EI, it doesn't make much sense to me either. |
Why cut part of your exposure to the world's most populas country with a rapidly increasing middle class.
Is this a sign of weakness, rather than strength..?.
A measure to help prop up an ailing share price, perhaps. |
 Pru will not quit the London market, but it must grow its Asian investor base (they know the markets Pru operates in much better than historic western investors and are likely to give it higher valuation). It will become increasingly like Standard Chartered, British in name only.
There is limited value in cross border ownership of insurance these days. Local capital rules continue to dominate and excess capital is held in complex groups.
It is always desirable to have majority control over subsidiaries to be able to release value to the Group. There may well be a divergence of views over the future of the JVs between ICICI and Pru. Having sold down to 22% on the Life JV, we may see a similar quantum of change on the Asset Management side.
The last results showed ICICI-Pru IM managed about US$100bn which is growing quickly. Investment Management is a high volume low margin business if they are making 25bps that would be $250m pa profit and on a multiple of 10x (conservative given growth prospects) a value of about $2.5bn, 30% would be about $750m before taxes. It will be interesting to see what the IPO valuation is and how much Pru manages to extract after tax…..possibly up to $1bn depending on conditions and what % is sold. |
Market report
Prudential said that should it go ahead with the spin-off of its Indian arm, the net proceeds would be returned to shareholders and that it would provide a further update ‘at an appropriate time’.
Bank of America analysts said the move ‘could be a positive catalyst’, adding: ‘We think several investors are not aware of the value of this business.’ Shares in Prudential surged 5.8 per cent, or 39.4p, to 722p.
ICICI Bank, which holds the remaining 51 per cent, said it intended to retain the stake.
Prudential, an insurer with historical roots in the UK, where its typical agent was once termed the ‘man from the Pru’, is today purely focused on Asia and Africa.
Its chairman, Baroness Vadera, is based in London, but Anil Wadhwani, who has been chief executive since early 2023, leads the business from Hong Kong.
Prudential has repeatedly batted off suggestions that it might quit London itself.
Daily Mail |
This is a great business with some significantly undervalued assets. Just like at L&G, the management are seeking to demonstrate this SOTP value by selling off subsidiaries at significant premia to their market implied value. It's a real shame that this is necessary but at least it will demonstrate how undervalued the shares are . I'm buying more ! |
Presumably the return will mostly be in a buy back…if the Directors consider the shares undervalued…… |
Some good news at last.
Yippee. |
Prudential plc announced today that it is evaluating a potential listing of ICICI Prudential Asset Management Company Limited involving the partial divestment of its shares, subject to market conditions, requisite approvals and other considerations. It is intended that following the completion of such a divestment, the net proceeds would be returned to shareholders. |
still going up
bought more
now 723p |
sudden bump up half way through this morning. pru doesn't normally do this.
suspect something going on.
bought a lot more around 714p |
PRU wants to go up in a weakish market...any broker news?... |
PRU is lagging behind in wider rally... |
PRU and HSBC is quite interesting as they are both heavily focused on the Far East. A combined business could split down the middle, one for UK and Europe and one for Far East. |
Has this got 720p print on it?... |
Sorry my mistake, when are we getting our Fourth quarter update |
Pru results due 20th March according to II. |
Yep I knew that! |
11th March 2025. |
What results? |
Results tomorrow |
That's an interesting speculation...HSBC already has a large life business and not sure if the regulator would approve the takeover or merger due to anticompetitive rules |
Anybody think HSBC could make a move on PRU?...part cash and part HSBC rich paper... |
Maybe in black out period?... |
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