Virgin Money shareholders will receive a cash payment for their shares as a result of a recommended acquisition by Nationwide, which has been sanctioned by the Court.
The Acquisition of Virgin Money
The boards of Virgin Money and Nationwide have announced that a scheme of arrangement has been sanctioned by the Court. This legal process is designed to implement the recommended cash acquisition of the entire issued share capital of Virgin Money.
Essentially, this means that Virgin Money will be acquired by Nationwide, and Virgin Money shares will cease to be publicly traded.
Impact on Shareholders
For Virgin Money shareholders, the primary outcome of this scheme of arrangement is the conversion of their shareholdings into cash.
- Cash Payment: Shareholders will receive a specific cash amount for each Virgin Money share they own. The scheme involves a recommended cash offer, ensuring a financial return for their investment.
- Cessation of Shareholding: Upon the scheme becoming effective, shareholders will no longer hold shares in Virgin Money. Their ownership will be transferred to Nationwide as part of the acquisition.
- Delisting of Shares: Following the acquisition, Virgin Money's shares will be delisted from the stock exchange, meaning they will no longer be available for public trading.
Understanding a Scheme of Arrangement
A scheme of arrangement is a legally binding agreement between a company and its shareholders (or creditors) that, once approved by the Court and shareholders, allows for corporate restructurings, mergers, or acquisitions. In this context, it facilitates the transfer of all shares to the acquiring entity (Nationwide) in exchange for cash consideration.
The Court's sanction of the scheme on September 27, 2024, signifies that the legal process for the acquisition is moving forward as planned, paving the way for the ultimate cash payout to shareholders.
| Aspect | Before Acquisition | After Acquisition |
|---|---|---|
| Shareholding | Owns Virgin Money shares | Does not own Virgin Money shares |
| Asset Type | Equity shares in Virgin Money | Cash proceeds from share sale |
| Company Status | Independent, publicly listed company | Part of Nationwide Group, privately held |
| Trading Status | Shares traded on stock exchange | Shares delisted, no longer traded |
