CYGB, the owner of Clydesdale Bank and Yorkshire Bank, has made a revised proposal to Virgin Money.

Under the terms of the revised proposal, Virgin Money shareholders would own approximately 38% of the combined group, compared to 36% in the previous proposal.

The new proposal sees a new 7% increase in the exchange ratio as compared to the announcement on 7 May 2018.

Discussions are ongoing regarding other terms and conditions of the proposed combination and reciprocal due diligence is being conducted.

Separate discussions and due diligence are also ongoing between CYBG and Virgin Enterprises Limited in respect of the license of the Virgin Money Brand to the combined group.

CYGB has until 18 June to make a formal bid or drop its interest.