CYBG-Virgin shares begin trading on stock exchange
Virgin: aquired in June (pic: Terry Murden)
Shares in the newly-combined CYBG and Virgin Money bank begin trading on the London Stock Exchange today following the £1.7bn merger of the companies.
CYBG, the owner of Clydesdale Bank and Yorkshire Bank, announced an all-share offer to buy Virgin Money in June.
Virgin Money shareholders will receive 1.2125 new CYBG shares for every Virgin Money share held and will own about 38% of the merged business.
Jim Pettigrew, chairman of CYBG, said: “I am delighted we have completed the acquisition of the Virgin Money business.
“It is clear to us that the combined group can transform the UK banking landscape and offer real benefits to customers and communities throughout the UK.
“Since our IPO in 2016, the CYBG board and leadership team has established CYBG as a strong and sustainable business, with a track record of delivery and the credentials to deliver a transformational combination with Virgin Money. This transaction can deliver real value for all shareholders and create a powerful force in UK banking.”
The combined group has more than six million customers, c.£84 billion of assets and c.£70 billion of customer loans, including c.£58bn of mortgages – double the size of any other challenger bank.
As previously announced, CYBG CEO David Duffy will assume the role of chief executive and Ian Smith, current CYBG chief financial officer will retain the same position.
Jayne-Anne Gadhia, former chief executive of Virgin Money will be stepping down as CEO, but has agreed in principle to support the group as a senior adviser to David Duffy for a period of up to 18 months.
The remaining CYBG leadership team members will continue in their current roles and will be joined by Peter Bole and Hugh Chater from the Virgin Money executive team.
Mr Bole, formerly CFO of Virgin Money, will assume the role of group integration director with responsibility for leading the delivery of the integration programme across both businesses.
Hugh Chater, managing director, core bank of Virgin Money, will join the CYBG leadership team and be responsible for overseeing the day-to-day operation of the Virgin Money business in support of David Duffy as CEO.