NAB reprice UK sell-off
(2 February 2016 – Australia/United Kingdom) National Australia Bank (NAB) has reduced the share price for the demerger of its UK banking operations, Clydesdale and Yorkshire, sourced have said.
The new price range has been set at £1.75 to £1.85 - this is equivalent to A$3.53 to A$3.73 a share, down from the initial price range at £1.75 to £2.35. NAB has reportedly reduced the price range in response to adverse market conditions.
The decision to lower the valuation comes ahead of tomorrow’s bookbuild for the initial public offering, which will result in NAB's existing shareholders taking a 75 percent stake in the UK bank, with new shareholders retaining the outstanding 25 percent.
It is understood that NAB rejected any move to delay the carve-out of Clydesdale and Yorkshire, despite the tumultuous conditions.
The news follows the last week’s decision by the UK government to delay the sell-off of Lloyds banking group.
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