A DEMERGED Yorkshire Bank will begin trading its shares on the London Stock Market nine weeks today after its Australian owners announced the roadmap to completing its exit.
National Australia Bank (NAB) bought Clydesdale Bank in 1987 and Yorkshire Bank in 1990 but has been wanting to offload its UK interests.
NAB’s intention is to pursue a demerger of 75% of Clydesdale and Yorkshire Bank Group to NAB shareholders and divest the remaining 25% by IPO to institutional investors.
The announcement of the institutional offer price will be make on February 2, with shares due to begin trading on the following Monday. The new business is expected to join the FTSE 250.
“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,” said NAB chairman Michael Chaney.
“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.”
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