Clydesdale Bank is to be sold off in a demerger by parent National Australia Bank (NAB) which will see the business acquired in part by shareholders with the remainder listed on the open market.
The group, which includes Yorkshire Bank, will be sold off in a deal which is expected to be finalised by the end of the year. Some 70% to 80% of the bank will be purchased by NAB shareholders, with the remaining 20% to 30% to be acquired in a sale of shares in an initial public offering. In order to proceed with the demerger, the Prudential Regulation Authority has required NAB to prop up Clydesdale Bank and its subsidiaries against any potential losses relating to legacy costs, which include its involvement in payment protection insurance and interest rate swap mis-selling. Last ...
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