Clydesdale sell-off pushed back

Shares in the Glasgow-based lender, which includes Yorkshire Bank, operating under the same licence, had been set to start trading on the London Stock Exchange after it was announced last month that it was to be de-merged by the NAB, which has owned it since 1987.

Shares are expected to be traded on the London Stock Exchange under the new name CYBG,

However, pushing back the big day, Clydesdale said the sale would go ahead following what it said was “a very short delay”.

Chief executive David Duffy said: “I am delighted that NAB has today confirmed the demerger and that the IPO is expected to proceed.

“Whilst we have a very short delay in launching the IPO it is very important that we commence trading as an independent company in the best possible way.

“We have made excellent progress with the transaction and we have very strong interest in our story.”

Three quarters of the shares are being distributed to NAB shareholders, and also traded on the main Australian stock market.

The range of possible share prices were announced last month, at between £1.75 and £2.35. This was seen as lower than analyst expectations, reflecting difficult market conditions.

The other quarter has been offered to institutional investors, and after a week of “conditional trading” between City of London investors, they will be fully tradable from 8 February.

NAB has been trying to offload its only European subsidiary for several years, under pressure in Australia, where a British bank is seen as a burden.

The parent company has been unable to find another bank to take on the Clydesdale as a subsidiary.

It took heavy losses on poor property loans and mis-selling charges to prepare the British lender for flotation.

Approval for the de-merger came from NAB shareholders last week, and the Supreme Court of Victoria state on Monday morning.

NAB chief executive, Andrew Thorburn, issued a statement welcoming the creation of two corporate entities: “The de-merger allows each business to focus on improving performance in their home markets and on business priorities that will maximise value for their respective shareholders.

“NAB is now in a position to focus all its resources, attention and leadership on the markets most important for us - Australia and New Zealand.”