The remaining 75% will go to existing NAB shareholders, who will receive one Clydesdale and Yorkshire share for every four they hold in the Melbourne-based parent company.
The new company, CYBG PLC, will be listed on the London Stock Exchange and Australian Securities Exchange.
Michael Chaney, chief executive of National Australia Bank, said: “Having assessed a number of alternatives, the NAB board considers the demerger – in conjunction with the opportunity to undertake the IPO – is the best exit option and is likely to enhance value for NAB shareholders over the long-term.
“The demerger provides eligible shareholders with separate investments in NAB and CYBG and if they choose to retain their CYBG securities, the ability to benefit from any improvement in the UK economy and CYBG’s strategy and performance going forward.”
The demerger is subject to court, shareholder and regulatory approvals. Shareholders will vote on the proposals on January 27.
Andrew Thorburn, NAB group chief executive, added: “Following the demerger, NAB is likely to benefit through a combination of improved return on equity and capital generation given the higher profitability and returns currently generated from NAB’s core Australia and New Zealand businesses.”
