NAB is pursuing a demerger of 75% of CYBG to NAB shareholders and a divestment of the remaining 25% by IPO to institutional investors.
Shares are due to commence trading on 2 February 2016.
NAB’s intention to exit the UK Banking business was first signalled in October 2014 following a fall of nearly 10% in full-year profits, largely due to provisions relating to a misconduct over insurance policies.
During the March 2015 half year, a £21 million fine was issued to Clydesdale Bank in relation to its management of PPI claims.
Speaking last month, NAB Chairman, Michael Chaney, said:
“Having assessed a number of alternatives, the NAB Board considers the demerger (in conjunction with the opportunity to undertake the IPO) is the best exit option and is likely to enhance value for NAB shareholders over the long term.
“In recent years, NAB has taken a number of steps and initiatives to strengthen CYBG’s standalone position. The NAB directors are of the view that CYBG is now in a position to be demerged to NAB shareholders and be listed as a standalone retail and SME bank with a strong franchise across its core regional UK markets, a strong balance sheet and capital position, a robust business plan and operating platform, as well as an experienced management team.
“The demerger provides eligible shareholders with separate investments in NAB and CYBG and if they choose to retain their CYBG securities, the ability to benefit from any improvement in the UK economy and CYBG’s strategy and performance going forward."
