NAB board approve Clydesdale divestment
(1 December 2015 – United Kingdom) The Clydesdale and Yorkshire Bank is set to float on the UK stock market in February, after the National Australia Bank’s (NAB) board of directors voted to move forward with the sale.
However, the sale must receive blessings from both the Australian bank’s shareholders and British regulators.
Between 20-30 percent of the shares in the new bank will be sold to new investors, while the remainder will be given to existing NAB shareholders.
NAB has struggled to make sustainable returns on its UK operations, indicating the sell-off will be beneficial to both parties.
PPI mis-selling has cost the bank £670 million (A$1.4 billion) between 2012 and 2014, and regulators issued a £21m fine this year for handling mis-selling claimants poorly.
Since 2012 the bank has attempted to restructure operations, drastically reducing commercial real estate lending while increasing its secured residential mortgage business.
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