Clydesdale and Yorkshire, one of the largest “challenger” banks in the UK, has announced its intention to float on the London and Australian stock exchanges, as it moves closer towards independence for the first time in nearly 100 years.
The UK bank, which operate as a division of Clydesdale under its licence, is being floated by parent group National Australia Bank as part of its strategy to exit the UK to focus on its core domestic market, reports Emma Dunkley, UK banking correspondent.
Clydesdale confirmed on Monday that 25 per cent of the bank will be floated on the stock exchanges, while 75 per cent will be “demerged” to existing NAB shareholders, both of which are planned for early February.
David Duffy, chief executive of Clydesdale and Yorkshire said, has spent the last week with senior management in Australia to rally interest from investors. Existing NAB shareholders will receive one share in the UK challenger for every four held in the Australian parent group.
He told the FT that he believes Clydesdale and Yorkshire have the advantage over other challengers of being a full-service retail bank, offering consumer, small business and clearing services.
Mr Duffy acknowledges that NAB shareholders “might have seen issues in the past” with Clydesdale as “a bank that suffered from a lack of strategic clarity and conduct issues.”
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