The Australian Prudential Regulation Authority (APRA) has today granted approval to National Australia Bank Limited (ASX:NAB) under section 14(1)(a) of the Financial Sectors (Shareholdings) Act 1998 to hold a 100 per cent stake in 86 400 Holdings Ltd and 86 400 Ltd.
The approval is subject to the relevant scheme of arrangement between 86 400 Limited and its members receiving court approval under Part 5.1 of the Corporations Act.
Let’s recall that, in March, the Australian Competition and Consumer Commission (ACCC) said it will not oppose the proposed acquisition of 86 400 Holdings Ltd by NAB.
Post-acquisition, NAB’s existing digital bank UBank will be integrated with 86 400. UBank is NAB’s online only bank brand. NAB offers a broad range of financial products and services, including transaction and savings accounts, and business and home loans.
86 400 is a digital bank headquartered in Sydney. 86 400 does not operate a physical branch network, or online browser-based banking facilities, with the key customer interface being the 86 400 smartphone application.
86 400 has offered online transaction and savings accounts since September 2019, and launched a home loan product sold through a network of selected brokers in November 2019. 86 400 is majority owned by Cuscal Ltd, one of Australia’s largest independent payments providers.
NAB commenced discussions with 86 400 in late 2020. To support 86 400’s growth, NAB subscribed for a minority stake in 86 400. In the end of January 2021, NAB proposed to acquire the remainder of shares in 86 400 by way of a scheme of arrangement.