By Ian Walker

LONDON--National Australia Bank Ltd. (NAV.AU) confirmed on Friday that it is planning a demerger and initial public offering to institutional investors of CYBG PLC, the holding company of Clydesdale Bank PLC and Yorkshire Bank in the U.K.

The Australian bank said last month it planned to float Clydesdale Bank, which was established in Glasgow in 1838, on the London Stock Exchange in February. As part of the plan, it will demerge CYBG, issue 75% of the stock to existing shareholders and float the rest through an initial public offering.

CYBG will have its main listing in London with a CHESS depositary interest listing on the Australian Securities Exchange, NAB said on Oct. 28.

The proposed demerger and IPO are subject to various court and regulatory approvals, and NAB shareholder approval, the Australian bank said. Shareholder approval will be sought at a meeting expected to be in late January 2016, it added.

Detailed information, including the impact on the parent and CYBG, is expected to be issued with the scheme booklet in the week starting Dec. 7, NAB said.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

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(END) Dow Jones Newswires

November 27, 2015 03:26 ET (08:26 GMT)

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