CANBERA (dpa-AFX) - National Australia Bank (NABZY.PK, NAUBF.PK) said that it plans to sell a minority stake in its US-based subsidiary Great Western Bank or GWB through an initial public offering of shares in the US.
It is customary in the US to sell a minority stake initially if exiting a business via the public markets.
National Australia Bank or NAB plans to sell 100% of its ownership of GWB over time, subject to market conditions.
It is anticipated that the IPO will launch in the fourth-quarter of the 2014 calendar year, with the relevant dates, pricing and volume information, and the related NAB Group financial impacts to be available around the time of launch.
The timing of subsequent sales of GWB shares is unknown and is subject to customary sale restrictions in the US, including an initial 180-day lock-up period.
NAB Group Chief Executive Officer Andrew Thorburn said plans to sell Great Western Bank were consistent with NAB's strategy to focus on its core franchises in Australia and New Zealand.
The company expects that the progressive sale of GWB will increase the Group's Common Equity Tier 1 capital ratio, however the recognition and timing of this benefit is subject to APRA's determination.
Deutsche Bank Securities and BofA Merrill Lynch are acting as joint book-running managers and underwriters.
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