About NAB Convertible Preference Shares II
NAB Convertible Preference Shares II (CPS II) were fully paid preference shares issued directly by NAB, and were listed on the ASX under code NABPB. The issue price for CPS II was $100 per CPS II. They were not guaranteed or secured, and were not a deposit account or any other account with NAB.
On Thursday 17 December 2020, all CPS II were redeemed for $100 per CPS II. This occurred substantially by way of a reduction of capital, with the balance by way of redemption, upon which all CPS II were cancelled. In addition, a final cash dividend of $0.5829 per CPS II was paid to CPS II holders on the record date for the final dividend.
A general outline of the taxation implications for certain holders of CPS II who are Australian residents for tax purposes can be found in the Australian Taxation Summary in the CPS II Prospectus. The taxation implications depend on your individual circumstances.
For more information on the CPS II please refer to:
- NAB Convertible Preference Shares II payment history and relevant ASX announcements
- NAB Convertible Preference Shares II - Redemption Notice, opens in new window
- Replacement Prospectus – NAB Convertible Preference Share II Offer (PDF, 1MB), opens in new window
- ATO Class Ruling (PDF, 610KB), opens in new window
On Thursday 17 December 2020, all CPS II were redeemed for $100 per CPS II. This occurred substantially by way of a reduction of capital, with the balance by way of redemption, upon which all CPS II were cancelled. NAB was entitled to redeem the CPS II on this date under the terms of the CPS II.
In addition, a final cash dividend of $0.5829 per CPS II was paid to CPS II holders on the record date for the final dividend.
All CPS II holders received $100 per CPS II. However, as set out in the final payment advice, 99.9999% of this amount was attributable to the reduction of capital, with the balance being attributable to the redemption.
This breakdown of the components was included in your final payment advice as it was required by Australian tax law. The total redemption proceeds ($100 per CPS II) should be used to calculate any capital gain/loss arising from the redemption.
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Note: the above information is not financial advice.
NAB CPS II did not constitute deposit liabilities of NAB. They're not protected accounts for the purposes of the Banking Act 1959 (Cth) or any other accounts. They're not guaranteed or insured by any government, government agency or compensation scheme of the Commonwealth of Australia or any other jurisdiction, by any member of the NAB Group or by any other party.
NAB CPS II have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction of the United States. They may not be offered, sold or resold in the United States or to, or for the account or benefit of, any "U.S. Person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from the registration requirements.