Judge will decide whether Sir Richard Branson can vote to pay out £650m Virgin Money in a Nationwide deal
A High Court judge will decide this week whether Sir Richard Branson can vote in favor of Nationwide’s £2.9 billion bid to buy Virgin Money, where the tycoon is the largest shareholder.
Branson is expected to make £650 million from the deal, which will create Britain’s second-largest savings and loan group.
His stake in Virgin Money is valued at £400m, but he is also eligible for a further £250m in exit fees plus income from licensing his Virgin brand to Nationwide for a period of up to six years.
In the money: Sir Richard Branson is expected to earn £650 million from the deal, which will create Britain’s second largest savings and loan group
The court will decide on Friday whether these add-ons mean companies controlled by Branson should be treated in the same way as other Virgin Money shareholders – as both Virgin and Nationwide argue.
But the judge could prevent him from voting, given his additional financial stake in the outcome.
Nationwide is also facing increasing calls from some of its 16 million members who want the building society to also have a say in the buyout.