Clydesdale and Yorkshire Bank (Google Finance: CYBG PLC/IDR UNRESTR) (ASX: CYB) was the top gainer on the ASX200 on Monday, up 5% to $5.26.
The UK-based lender, listed in both London and Sydney, made a revised proposal for a merger with Virgin Money UK, leading to the creation of a new financial group serving around 6 million personal and business customers.
Under the terms of the new proposal, Clydesdale and Yorkshire Bank will acquire the entire share capital of Virgin Money issuing 1.21 new shares in exchange for each share in Virgin.
Virgin Money shareholders would end up owning about 38% of the combined entity. The exchange ratio outlined in the new offer is 7% higher than the one from the first proposal presented on May 7.
The two parties are negotiating other terms and conditions and conducting reciprocal due diligence. The two companies believe the merger would create a new entity capable of competing with large incumbent banks thanks to a nationwide presence and an enhanced offer to retail customers and small and medium enterprises.
The transaction would also disclose cost synergies thanks to the rationalisation of operations and the reduction in investment and IT spending.
For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..
But knowing which blue chips to buy, and when, can be fraught with danger.
The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."
Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.
The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.
Click here to claim your free report.
Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.