NAB to sell remaining Great Western Bancorp holdings
NATIONAL Australia Bank is aiming to raise $ US385 million ($ A530 million) when it sells its final stake in its former US subsidiary Great Western Bancorp through a public offering.
The bank, which is refocusing on its core Australian and New Zealand operations, will sell 12.7 million shares as part of the offering, while Great Western has agreed to repurchase about $ US60 million of NAB’s holding.
NAB also has given the underwriters the option to purchase 1.3 million shares at a price of $ US23.50.
If the offer is taken up in full, the bank says it will have fully divested its 28.5 per cent stake in the regional US lender.
NAB’s shares yesterday
will sell 12.7 million shares as part of the
finished down five cents, or 0.15 per cent, at $ 33.86.
It is part of chief executive Andrew Thorburn’s plan to cast off NAB’s underperforming international businesses.
The bank said a demerger and initial public offering of its troubled Clydesdale subsidiary in the UK “remains a priority”.
It plans to spin off the business by the end of 2015.