Nationwide, Virgin Money directors "unanimously" back $3.7 bln deal (updated)

Virgin Money UK

21/03/2024 07:42

(Adds details on management, quotes in paragraphs 5-10)
    By Sinead Cruise
       LONDON, March 21 (Reuters) - Directors at Nationwide
Building Society and takeover target Virgin Money  VMUK.L  said
on Thursday they would "unanimously" recommend the proposed 2.9
billion pound ($3.71 billion) deal to independent Virgin Money
shareholders.
    Under the terms of the deal, each Virgin Money shareholder
will receive 220 pence in cash, comprising 218 pence per Virgin
Money share and a proposed dividend of 2 pence per share.
    The total value represents a 38% premium to Virgin Money's
closing price on March 6.
    "The boards of Nationwide and Virgin Money believe that the
acquisition will combine two complementary businesses, creating
the second largest provider of mortgages and savings in the UK,"
the companies said in a statement.
        Nationwide is the UK's third largest mortgage provider
and holds almost 1 in every 10 pounds saved in the UK, as well
as one in 10 of the UK’s current accounts.
  
    Nationwide also confirmed that its Chief Financial Officer,
Chris Rhodes, will become the CEO of Virgin Money after the
acquisition completes and current Virgin Money CEO David Duffy
retires.
         Muir Mathieson, Nationwide's Deputy CFO and Treasurer,
will become CFO of Nationwide. 
  
        Both appointments are subject to regulatory approval and
will report directly into Nationwide CEO Debbie Crosbie.
  
        "This acquisition strengthens Nationwide and means we
can offer more value and broader services for our current and
future members. More people will experience the benefits of
mutual ownership and the customer-focused approach of a building
society," Crosbie said in a statement.
  
        Nationwide also said it would extend its promise to
retain all branches in its network until at least the start of
2028, including all Virgin Money branches not already earmarked
for closure. 
  

    
($1 = 0.7814 pounds)

 (Reporting By Sinead Cruise)
 ((sinead.cruise@thomsonreuters.com; 020 7513 5026; Reuters
Messaging: sinead.cruise.thomsonreuters.com@reuters.net))