The big bank’s move to split from its UK subsidiary comes as NAB seeks to reprioritise its focus on building a stronger Australian and New Zealand business.
Material work on the potential demerger and IPO (by way of institutional offer) of Clydesdale is underway, with NAB prioritising for its exit to be completed by the end of 2015.
“The transaction is a substantial and complex undertaking, subject to a range of risks and issues including shareholder vote, regulatory approvals and board approvals,” NAB noted in an ASX update.
“Should the separation occur, Clydesdale will be one of the leading mid-sized retail and SME banks in the UK, with long established franchises in core regional and select national markets, a strongly capitalised balance sheet and an experienced new leadership team in place to deliver on the business’s clear strategic priorities of driving growth and returns.”
As part of the announcement, NAB announced the appointment of David Duffy as the new CEO of Clydesdale.
“Shareholders will be provided with further information at the appropriate time, should a decision be made to pursue the demerger,” NAB concluded.