A High Court judge will decide this week whether Sir Richard Branson can vote in favor of Nationwide’s £2.9bn bid to buy Virgin Money, where the tycoon is the largest shareholder.
Branson will earn up to £650m from the deal, which will create Britain’s second-largest savings and loan group.
Its stake in Virgin Money is valued at £400m, but is also in line with another £250m in exit fees plus revenue from licensing its Virgin brand to Nationwide for up to six years.
In money: Sir Richard Branson will earn up to £650 million from the deal, which will create Britain’s second-largest savings and loan group.
The court will rule on Friday whether these add-ons mean that companies controlled by Branson should be treated the same as other Virgin Money shareholders, as both Virgin and Nationwide argue.
But the judge could prevent you from voting given your additional financial interest in the outcome.
Nationwide is also facing growing calls from some of its 16 million members who want the building society to have a say in purchasing too.