LONDON: National Australia Bank Ltd, Australia's biggest lender by assets, won approval on Monday from the Supreme Court of Victoria to spin off its UK unit Clydesdale Bank Plc <IPO-CLBP.L>.
NAB is planning to sell 25 percent of Clydesdale in an initial public offering and spin off the rest to its shareholders. NAB has valued the unit at up to $3 billion, according to IPO pricing terms.
The Supreme Court approval of the demerger follows shareholder endorsement of the proposal last week, NAB said in a statement.
"The demerger 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 Group CEO Andrew Thorburn said in the statement.
"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."
Clydesdale is expected to list in London on Feb. 2. The indicative pricing range has been set at 175-235 pence per share.
NAB, which bought the business in 1987, said it planned to quit the 177-year-old British bank in 2014 after facing a consumer backlash over methods used to sell loan insurance.
Clydesdale said earlier this month that trading in the three months to December was in line with expectations.
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