NAB shares

Following the proposed demerger from the NAB of the UK banks operations, what is the likely effect on the price of NAB Shares?

Are the value of the NAB Shares diluted in the short term?

A: The effect is, of course, theoretical and will depend on the value of the CYBG shares.

I understand that NAB is expecting to price these at around £1.50 to £2.00 per share.

Assuming that NAB shareholders receive these shares on a 1 for 4 basis, then the theoretical price effect on NAB shares when they trade ex-entitlement should be between £0.38 and £0.50 per share, or approximately $0.79 to $1.04 per share.

Regards,


Read Answer