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National Australia Bank to float its troubled UK unit, plans to raise $4.38 by rights issue

  • Region:

    Sydney, Australia

  • Sector:

    Banks

  • Deal Size:

    $4.38 billion

  • Buy Side Company:

  • Sell Side Company:

    National Australia Bank
  • Target Company:

    Yorkshire, Clydesdale Bank

One of Australia’s largest banks, National Australia Bank (NAB) plans to raise A$ 5.5 billion ($4.38 billion) by way of a rights issue as it will be demerging and floating its troubled British unit, by end of this year. NAB’s UK business that includes Yorkshire and Clydesdale Bank have constantly been trouble areas with charges for bad and doubtful debt behind recent annual profit declines. The 2-for-25 rights shares will be issued at A$28.50 each, in the latest move by Australia's biggest banks to shore up their balance sheets ahead of an expected tightening of capital requirements.

Tags:

Australia, United Kingdom,National Australia Bank ,NAB,Yorkshire,Clydesdale Bank