The BBC reported that the group is also planning to inject GBP1.3 billion into Northern Rock. The takeover bid, if successful, would leave shareholders with less than half the equity of Northern Rock. RAB Capital, one of the major shareholders in Northern Rock, is said to have plans to reject the bid stating that the offer is too low, as cited in the BBC.
If the takeover bid is successful, Virgin will get 55% of Northern Rock’s shares for GBP0.25 each. Virgin is also planning to change the brand name of Northern Rock and keep its stock listing, the publication added.
As cited in the BBC, Bryan Sanderson, chairman of Northern Rock, said: Over the last few weeks and months we have looked at the issues from the perspective of all stakeholders. I am grateful for the support that we have had from customers and employees who have stayed loyal to us during these difficult times – and pleased that a solution that firmly restores the company’s prospects has been identified.
