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Magic Circle trio and KWM advise on Clydesdale float as owner makes cut-price share offer

Clifford Chance, Allen & Overy (A&O), Linklaters and King & Wood Mallesons (KWM) are advising on Clydesdale and Yorkshire Bank’s proposed initial public offering (IPO) as its owner National Australia Bank (NAB) announced a cut-price share offer ahead of the float – a move which could impact other IPOs in the market.

NAB, which plans to demerge and float the UK business – also known as CYBG – in February, set the price for shares at between 175p and 235p a share, valuing the Scottish bank at between £1.5bn and £2bn ahead of the float, marking a discount from the bank’s book value of between £2bn and £2.5bn.

The Australian bank is expected to demerge 75% of CYBG to its shareholders, with the remaining shares set to be sold on the London stock exchange.

Clifford Chance is advising client NAB and CYBG with equity capital markets (ECM) partner Adrian Cartwright and corporate partner David Pudge leading, along with corporate partner Gareth Camp.

A&O is acting for the board of CYBG with capital markets partner James Roe leading.

KWM is advising NAB on Australian issues with Melbourne based partners Diana Nicholson and Peter Stirling leading.

A team from Linklaters is advising underwriting banks JPMorgan, Morgan Stanley, Macquarie Capital and Bank of America Merrill Lynch, led by partners John Lane and James Wootton, with Patrick Sheil advising on US matters.

The cut in share price could have an impact on the pricing of other IPO’s such as CMC Markets and Countryside Properties, which were announced earlier this month and are yet to publish their prospectus with their respective price ranges.

Trading in CYBG shares is expected to start on February 2 in London, while the Australia-listed depository receipts will trade from February 3.

NAB, which bought the business in 1987, previously planned to quit the Scottish bank after facing a consumer backlash over mis-selling loan insurance.

In July 2014, the British lender reduced its existing national law firm panel from 13 to seven, but confirmed it will continue to use NAB’s London Branch legal panel, which included firms like Linklaters, for specialist legal advice where appropriate.