NAB considering wealth options
(24 January 2017 - Australia) National Australia Bank (NAB) is believed to be considering spinning off and floating wealth management business.
Reports suggest that the bank’s management has spent time investigating whether the unit could be separated and floated on the ASX via an initial public offering.
The new company may include NAB's superannuation and investment funds manager MLC, corporate superannuation arm Plum Super, its financial planning dealer groups and even retail broker JBWere.
Analysts expect that the combined businesses would record A$300 million in annual profits, and be valued at around A$6 billion.
It is understood NAB has met with investment banks as part of the review, garnering insights on whether there would be listed market demand for such a company and how to structure such a deal.
Aside from a public listing, other options of spinning off the wealth unit include a corporate restructure, a demerger, a sale or partial sale to a strategic or trade buyer, or retaining the business. Any deal separating the unit from NAB would take considerable time.
The bank’s wealth plans follow that of its major domestic rivals. Commonwealth Bank considering floating Colonial First State Global Asset Management, while ANZ signed a deal to sell its OnePath investment management and four dealer groups to IOOF last October.
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