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Friday, 28 March 2008
NAB today announced that it expects an after-tax gain of approximately $221m from its shareholding in Visa Inc, following the recent Visa IPO on the New York Stock Exchange.
This comprises amounts of $181m and $40m arising in its Australian and New Zealand businesses respectively. At this stage, due to the structure of the IPO, no gains can be recognised by the Group’s UK business, with timing for the UK participation yet to be finalised.
The gain represents the sale of approximately half of the Group’s holding into the IPO and the fair value of the residual shares held. This gain has been determined based on the listing price of US$44 per share, adjusted for transaction costs and an allowance for trading restrictions. The amount may fluctuate due to exchange rate movements.
Any post IPO gains or losses on the Group’s residual shareholding from movements in the Visa share price will not be realised until the remaining shares are disposed of.
The gain will be treated as a significant item in the Group’s 31 March 2008 half year results.
The majority of the gain will be offset through the creation of a one-off central bad and doubtful debt provision against the current uncertain global economic environment. This action will further strengthen the NAB balance sheet and better position NAB to withstand any future economic volatility. The remainder will be used to fund a new organic business development initiative around a deposit focused stardirect on-line banking offer. This will not be used to fund business as usual operating expenditure.
Full details of the gain will be provided as part of the Group’s half year results on 9 May 2008.
For further information:
Investor Relations
Hany Messieh
Head of Investor Relations
M +61 (0) 414 446 876
Media
Kerrina Lawrence
Manager Media Relations
M +61 (0) 417 034 738
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