National Australia Bank, the parent company of Clydesdale and Yorkshire Bank, has unveiled details of a proposed demerger and IPO.
Under the terms laid out by NAB, 25 per cent of the bank will be divested via IPO, with the remaining 75 per cent of Clydesdale shares going to existing investors.
NAB shareholders will receive one Clydesdale share for every four NAB shares they own.
If the demerger and IPO is approved, it is expected that Clydesdale will be listed on the London Stock Exchange in February next year.
NAB chairman Michael Chaney says: “Having assessed a number of alternatives, the NAB board considers the demerger is the best exit option and is likely to enhance value for NAB shareholders over the long-term.”
He adds: “The NAB directors are of the view that [Clydesdale and Yorkshire Bank] 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.”