CYBG and Virgin Money shareholders approve takeover

(Sharecast News) - CYBG could take over Virgin Money by the end of the year after shareholders on both sides gave their backing on Monday.At the court meeting and general meeting, all resolutions proposed for the £1.7bn all-share were voted through, with more than 99% supporting the deal.Completion of the offer remains subject to a number of conditions including regulatory approvals and court sanctioning to take place in the fourth quarter. Major investors believe CYBG's pile of surplus capital could lead to further acquisitions, with TSB and OneSavings seen as potential targets. "CYBG has a chance to create a challenger bank that actually has some heft and can compete effectively against the big banks," one major investor told the Telegraph.Around 13% Virgin Money shareholders rebelled against a resolution giving the bank's chief executive, Jayne-Anne Gadhia, a £619,000 redundancy payout, on top of a termination payment of £1.1m and a bonus owed to her of £1m.Gadhia said: "I am delighted with the support from our shareholder base in approving the recommended all-share offer for Virgin Money by CYBG. Bringing together the complementary strengths of Virgin Money and CYBG will create the UK's first true national competitor in UK banking, improving competition and choice for all UK consumers, while enabling the Virgin Money franchise to continue to flourish."The combined group will rebrand as Virgin Money over three years after agreeing a license with Richard Branson's Virgin Group. A fixed yearly minimum royalty of £12m will be paid the first year up to £15m in the fourth year. From the fifth year the payment will comprise a minimum £15m plus an additional yearly royalty of 1% of CYBG turnover above a certain level.