CompaniesFeb 1 2016

Court approves National Australia Bank UK spin-off

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Court approves National Australia Bank UK spin-off

National Australia Bank’s demerger of its UK banking operations has been given the stamp of approval by the Supreme Court of Victoria.

In a statement released today (1 February), the bank revealed the proposal had been granted approval by the court following overwhelming support from shareholders last week.

NAB chief executive Andrew Thorburn said he was delighted the court had given the final approval for the demerger of the Clydesdale and Yorkshire Banks (CYBG).

“The court’s approval today is the final significant step in the separation of NAB and CYBG into two independent corporate groups,” he said.

“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.”

The demerger allows each business to focus on improving performance in their home markets.

The demerger is set to be implemented on 8 February.

NAB will lodge the orders of the Supreme Court of Victoria with the Australian Securities and Investments Commission tomorrow (2 February).

CYBG is also expected to commence trading under the London Stock Exchange’s main market for listed securities on a conditional basis tomorrow (2 February).

The outcome of the proposed initial public offering to institutional investors of CYBG, including pricing, is also expected to be announced tomorrow (2 February).

Mr Thorburn said both companies can now look ahead to the future.

He said: “NAB is now in a position to focus all its resources, attention and leadership on the markets most important for us – Australia and New Zealand.”

NAB’s demerger plans were originally announced in May, with the banking group confirming its plan to offload its subsidiaries in November.

katherine.denham@ft.com