In March, NAB had to put aside £1.7 billion provisions on the orders of the Prudential Regulation Authority in oirder to cover any legacy issues which might arise at Clydesdale.
Today NAB said that it would give its own shareholders one new share in CYBG for every four NAB shares they hold. That would leave them owning 75% of the UK business with the remaining 25% put up for sale in the float.
David Duffy, chief executive of CYBG, said: “This is another important step towards becoming independent for our Clydesdale and Yorkshire Bank brands.
“We will be able to shape our own strategy, build a better bank for our customers, and deliver long-term and sustainable growth for our shareholders.”
NAB shareholders will vote on the spin-off on January 27 with dealings in CYBG shares expected to start on February 2.
