National Australia Bank (NAB) is planning to raise $385m by offloading its final stake in its former US subsidiary Great Western Bancorp (GWB) through a public offering.
The move, which is part of NAB’s global divestment strategy to focus on core operations in Australia and New Zealand, will see the bank sell 12.7 million GWB shares.
Great Western has also agreed to repurchase nearly $60m worth of NAB’s holding.
At the same time, NAB has granted a 30-day option to underwriters to buy up to an additional 1.3 million GWB shares at a price of $23.50.
Following closing of the offering and the share repurchase deal, and if the underwriters do not exercise the additional share purchase option, NAB’s stake in GWB common stock would be diluted from 28.5% to 2.2%.
If the option is exercised in full, NAB will have fully divested its 28.5% stake in the South Dakota-based lender.
The offering and the share repurchase deal, subject to closing conditions, is scheduled to close on 31 July 2015.