By Alice Uribe

SYDNEY--National Australia Bank Ltd. has agreed to take full control of Australian neobank 86 400 in a bid to grow its UBank brand.

The Australian bank on Friday said that it would pay 200 million Australian dollars (US$153.6 million) to purchase outstanding shares in 86 400. NAB currently owns around 18.3% in 86 400 and proposes to acquire the remaining shares by way of a scheme of arrangement.

"Bringing together UBank and 86 400 is consistent with NAB's long-term strategy and growth plans and will enable us to develop a leading digital bank that can attract and retain customers at scale and pace," said NAB Chief Operating Officer Les Matheson.

Completion of the transaction is subject to regulatory approvals, and approval of the scheme by the Federal Court.

86 400's independent directors have unanimously recommended that its shareholders vote in favour of the scheme. 86 400 and UBank will continue to operate as separate businesses until the transaction is finalized.

Write to Alice Uribe at alice.uribe@wsj.com

(END) Dow Jones Newswires

January 28, 2021 17:05 ET (22:05 GMT)

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