Virgin Money: Corporate Action - Vote in Favor of Acquisition by Nationwide

We recommend shareholders of no-moat Virgin Money vote in favor of Nationwide Building Society’s takeover proposal at the general meeting on May 22, 2024. Nationwide’s offer of GBX 220, or about AUD 4.21 per Virgin Money share, comprises a GBX 218 cash consideration plus a GBX 2 unfranked dividend, which values Virgin Money at GBP 2.9 billion, or approximately AUD 5.6 billion. Payment of the dividend is part of Virgin Money’s ordinary dividend distribution schedule for fiscal 2024 and is not conditional on the scheme becoming effective.