The British government will receive GBP747m in cash on closing of the sale, with the potential in the future to receive over one billion pounds in total.
The government will also receive GBP50m in cash within six months, GBP150m of Tier 1 capital notes and as much as a further GBP80m in cash in the next five years subject to a profitable initial public offering.
Virgin Money has confirmed that the operational headquarters of the business will be in Newcastle and that the total number of Northern Rock branches will be retained.
The sale is expected to complete by the end of 2011, subject to approval from the FSA and merger clearance from the European Commission.
