Clydesdale and Yorkshire banks announces intention to float with IPO in UK and Australia

Lauren Fedor
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National Australia Bank chief executive Andrew Thorburn has said NAB will benefit from the demerger (Source: Getty)

Clydesdale Bank today announced its intention to float on both the London and Australian stock exchanges.

The British banking business, which is currently owned by National Australia Bank (NAB), confirmed plans for a demerger and initial public offering (IPO) in Februrary of next year.

Clydesdale, which includes Yorkshire bank and is called CYBG Group in official documents, is valued at an estimated £2bn. It is among the largest of Britain's mid-sized banks.

In a statement this afternoon, Clydesdale said the demerger would involve selling 75 per cent of the bank's shares to NAB shareholders, and 25 per cent to institutional investors through the proposed IPO.

The bank said that the IPO and demerger are expected to be completed at the same time, in early February 2016.

Clydesdale has proved to be a drag on NAB's business in recent years, with multiple write-downs following bad property loans and severe PPI mis-selling charges.

But Clydesdale management insisted today that the business is now in a "good position" and ready for the spinoff.

"Much has been done to re-shape and strengthen the business; supporting our plans for growth by building a better bank for customers," said chief executive David Duffy.

Chairman Jim Pettigrew agreed, saying: "Over the past few years we have made significant efforts to strengthen not just our financial position, but our risk profile and our governance structures. We are now in a position to pursue our own strategic objectives, priorities and opportunities as a stand-alone business."

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