NAB to sell Clydesdale and Yorkshire Bank; IPO proceeding tomorrow with value around £1.5bn

The National Australia Bank, current owner of Britain’s Clydesdale and Yorkshire Bank, has received approval from Australian courts to sell the British entity, just hours before Clydesdale and Yorkshire Bank is due to begin conditional trading on stock exchanges in Britain and Australia. National Australia Bank (NAB) has officially confirmed that its demerger has been approved, […]

The National Australia Bank, current owner of Britain’s Clydesdale and Yorkshire Bank, has received approval from Australian courts to sell the British entity, just hours before Clydesdale and Yorkshire Bank is due to begin conditional trading on stock exchanges in Britain and Australia.

National Australia Bank (NAB) has officially confirmed that its demerger has been approved, which means that Clydesdale and Yorkshire Bank’s IPO can now proceed.

Originally, the IPO was due to take place today, however a low pricing of 180p per share in this morning’s valuation has resulted in the IPO having been deferred until tomorrow.

NAB, which is a prominent interbank FX provider in Australia, as well as offering retail and commercial customers FX forward conracts and vanilla FX options, is offloading the British bank to the satisfaction of CEO Andrew Thorburn.

Mr. Thorburn said in a commercial statement

The court’s approval today is the final significant step in the separation of NAB and CYBG into two independent corporate groups. 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. Both companies can now look ahead to the future.”

Today, Clydesdale and Yorkshire Bank was expected to begin conditional trading, however this is likely to take place tomorrow due to this morning’s bottom range pricing. Unconditional trading is likely to commence on February 8.

Yesterday, the bank had set an indicative pricing range of 175p to 235p for the IPO, which equates to a valuation of between £1.5 billion and £2 billion for the entire business.

The demerger between NAB and Clydesdale and Yorkshire Bank will involve selling 75% of the bank’s shares to NAB shareholders and 25% to institutional investors via the proposed IPO.

Today’s institutional nature of former regional banks which began as independent savings organizations with passbooks in provincial areas of the UK which were intended to assist working people to save to buy (or build) houses via savings and mortgage lending is far removed from the origins of both Clydesdale and Yorkshire Bank.

Clydesdale Bank was purchased by NAB in 1987 at which time it was merged with NAB’s other British Subsidiary Yorkshire Bank. To this day, Clydesdale Bank retains its mandate to produce official bank notes in Scotland.

In a statement today, Clydesdale and Yorkshire Bank said:

“This is a near term downgrade of the short- and/or long-term deposit rating or the placing of such rating on credit watch with negative implications. Clydesdale and Yorkshire Bank does not anticipate any such downgrade to have any material impact on its ability to raise funding, the overall cost of funding, or the financial outlook for CYBG. A downgrade of the short- and/or long-term deposit rating would require Clydesdale Bank to take mitigating actions in relation to its existing secured funding programmes.”

“This ratings development may not occur, and should it occur, is not considered material to the financial position and outlook of CYBG. However, given the proximity of this request to the IPO, NAB and CYBG have decided to delay finalisation of the IPO for 24 hours.”

Placing it near the lower £1.5 billion valuation at this point, it will be of great interest to view the pricing tomorrow at the time of the execution of the IPO.

Read this next

Digital Assets

Binance upgrades Bahrain license to offer full-suite of crypto services

The Central Bank of Bahrain (CBB) has granted Binance its Category 4 license as a fully-fledged crypto-asset service provider (CASP).

Digital Assets

BitMEX spot exchange hits $24 million in daily volume

The newly-launched spot market of crypto exchange BitMEX reported a record of $24 million in 24-hour trade activity on May 25.

Retail FX

Financial Commission certifies offering of trade copier 4X Solutions

The Financial Commission, an independent self-regulatory compliance specialist for the financial services industry, has certified the trading technology offered by trade copier 4X Solutions.

Industry News, Inside View

LIVE from Devexperts webinar for brokers on Fractional Trading

Finance Feeds is providing live coverage of the event that aims to help brokers discover fractional shares as a key tool for a successful brokerage business in today’s trading industry.

Industry News, Retail FX

ASIC celebrates retail ban on binary options as 68% of wholesale clients lose money

In the 13 months before the ban, between 74% and 77% of active retail clients lost money trading binary options. The product intervention order does not apply to wholesale clients.

Crypto Insider

Investing in crypto: how to stay away from weak players

The main reason behind the hacks of crypto exchanges is weak key management. For example, all 4 hacks that took place in 2021 were caused by the ability of hackers to obtain access to hot wallets. 

Retail FX

Vantage launches swap-free gold XAUUSD trades for all clients until end of July

“As the greenback continues to strengthen, we want to support traders who remain bullish on gold or seek short term trading opportunities amid the volatility”

Industry News

Broadridge launches ESG reporting solution ahead of European regulation SFDR

The Broadridge managed solution for EET adds to existing Broadridge services, including European PRIIPs Template, European MiFID Template, Solvency II Tripartite Template and many more across the European jurisdictions.

Industry News

iCapital to acquire embedded structured investment platform SIMON

SIMON’s platform, SPECTRUM, is a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio. 

<