Virgin Money Holdings (UK) PLC (VM.LN) said on Monday that it has accepted a 1.7 billion pound ($2.25 billion) all-share takeover offer from fellow British bank CYBG PLC (CYBG.LN). CYBG, the parent of British lenders Clydesdale and Yorkshire Bank, will issue 1.2125 new shares for each Virgin Money share. Based on Friday's closing prices, this values each Virgin share at 371 pence. This is a 4.5% premium to Virgin Money's closing price of 355 pence on Friday, and a 19% premium to its closing price of 312 pence before the disclosure of CYBG's approach in early May. The share ratio is unchanged from CYBG's formal offer on June 4. The deal will give Virgin Money shareholders a 38% stake in the combined business. CYBG said it has also come to an agreement with Virgin Enterprises Ltd., the brand licensing business of British billionaire Richard Branson's Virgin Group, to continue using the Virgin Money brand.via