Prudential to Separate Jackson Financial Through Demerger; Mulls Equity Raise -- Update
28 Janeiro 2021 - 6:48AM
Dow Jones News
--Prudential says demerger of U.S. business would accelerate
separation process
--The FTSE 100 insurer's aim is to focus on Asian, African
opportunities
--Prudential mulls equity raise of between $2.5 billion-$3
billion in Hong Kong, London, or both
By Adria Calatayud and Sabela Ojea
Prudential PLC said Thursday that it plans to separate its U.S.
business Jackson Financial through a demerger and that it is
considering an equity raise of up to $3 billion as it doubles down
on Asia.
The FTSE 100 insurer said the proposed demerger of Jackson from
the group would accelerate the separation process and complete its
transformation to focus exclusively on its high-growth Asia and
Africa businesses.
A demerger would lead to an earlier separation than would have
been possible through a minority IPO, Prudential said, adding that
this accelerated process would complete its transformation into a
group wholly focused on the health, protection and savings markets
of Asia and Africa.
"Following the demerger, as a pure-play Asia and Africa
business, Prudential will target a debt-leverage ratio of around
20% to 25% over the medium term," it noted.
As part of the demerger, shares in Jackson would be distributed
to Prudential shareholders, the company said. Prudential added it
would retain a 19.9% noncontroling interest in Jackson, which it
would seek to monetize over time to support investment in Asia.
The company also said it is considering raising new equity of
between $2.5 billion and $3 billion in Hong Kong or London, or
both, to increase its financial flexibility in light of the breadth
of the opportunities to invest in growth.
The plan is subject to shareholder and regulatory approval,
Prudential said, adding that it has appointed Steven A Kandarian as
nonexecutive chair of Jackson's board.
Regarding its performance, Prudential said that the overall
quarterly sales trajectory in Asia has kept improving during the
second half of 2020, with its operating performance for 2020
expected to be in line with current market views.
London-listed shares in Prudential at 0859 GMT were down 122.50
pence, or 9.1%, at 1,218.50 pence.
Write to Adria Calatayud at adria.calatayud@dowjones.com and
Sabela Ojea at sabela.ojea@wsj.com
(END) Dow Jones Newswires
January 28, 2021 04:33 ET (09:33 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Prudential (LSE:PRU)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Prudential (LSE:PRU)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024
