National Australia Says It Will Give U.K. Unit Spinoff Detailsby
Board gives formal assent to spin off, IPO U.K. unit CYBG
The lender said it expects to finalize the process in February
National Australia Bank Ltd. will release details of the proposed spinoff of its U.K. unit, including the impact on the lender, in the week starting Dec. 7.
The lender’s board formally approved proceeding with the demerger and initial public offering of CYBG Plc, formerly known as Clydesdale and Yorkshire banks, the Melbourne-based company said in a statement to the stock exchange. Last month, National Australia said it will seek shareholder approval for the process in January and hoped to complete it the following month.
The spinoff of CYBG will end years of struggles in the U.K. for National Australia and allow Chief Executive Officer Andrew Thorburn to focus on boosting Australia and New Zealand mortgages and corporate loans. Under the proposed plan, 75 percent of CYBG will be given to existing shareholders and the balance sold through an IPO.
“The proposed demerger and IPO remain subject to a range of matters, including various court and regulatory approvals,” National Australia said in the statement.