National Australia Bank’s demerger of its UK subsidiaries has been approved by the Supreme Court of Victoria, following “overwhelming” support from shareholders.
NAB Group chief executive Andrew Thorburn said he was delighted the court had given final approval for the demerger of Clydesdale Bank and Yorkshire Bank to proceed.
“The demerger allows each business to focus on improving performance in their home markets and on business priorities that will maximise value for their respective shareholders,” he said.
“NAB is now in a position to focus all its resources, attention and leadership on the markets most important for us – Australia and New Zealand.”
Commenting on the demerger last month, NAB chairman Ken Henry said the challenges faced by UK banks following the global financial crisis helped motivate the decision to exit the UK market.
“Clydesdale Bank has been a significant factor in NAB shareholder returns not being at the level that we have wanted – not competitive with our Australian peers,” he said.
According to Mr Henry, the demerger will see 75 per cent of a new holding company, CYBG plc – which will own NAB’s Clydesdale and Yorkshire Bank operations – distributed to NAB shareholders.
The remaining 25 per cent of CYBG will be offered to institutional investors through an IPO.