Prudential Share Discussion Threads

[whatja] 11/8/2021 19:04

1000 shares at 14800 will be split into 1000 Pru worth 14000 and 25 JXN CDIs worth about 800.
The JXN CDIs should be freely traceable in London as are many overseas companies. Depending on your broker fees it may cost 10 to sell…..it will cost you 20 to sell and buy back the Pru shares, so I would hold….and trade when you want to.

Looks to me like JXN is priced to go….so you may lose upside there too.

The potential HK raise of USD2-3bn is the problem management need to address….shorts May have a field day.

[cashflow101] 11/8/2021 16:19

Luderitz,well cant u just sell your alocation of Jackson shares,before Sept as shown in the Pru details,and carry on as before? Will have to wait for up to 60 days for the cash though.......................

[churchill2] 11/8/2021 14:19

The risk there is you miss in my view the under valuation of the Asian assets.

Lets face it a 1000 shares in the PRU is currently valued at £14800 is going to provide 25 shares in Jackson. Not anticipating any great value but probably keep short term to see what happens.

[luderitz] 11/8/2021 12:46

I certainly don't want to own any outfit that's priced in dollars so selling Pru before the 2/9/21 would seem my only real option I suppose, anyone have any alternatives apart from owning the damn things?

[whatja] 11/8/2021 12:19

If JXN is worth only $3bn (for the 89% owned by the group, it is worth about 80p per share.
Athene paid equivalent of 5bn valuation last year, so there has been massive value loss, despite a 1.8bn profit…..
Must be nearly bust….which would be a reason not to raise new funds before demerger in case the US regulator required a capital injection.


Sad for MWells to see his old unit become virtually valueless.

Q is this a low value for JXN to create a rise on demerger.

Asia results appear strong and appeal to the market…

[churchill2] 11/8/2021 10:41

The Jackson numbers were dreadful. Very little value remains for shareholders in the demerger. Surprised the share price has not taken a hit but plenty of time yet.Can only assume market has been well primed.

[bg23] 11/8/2021 08:49

ahh, thanks. forgot its post HK market close

[bull19] 11/8/2021 08:46

9.30 I think

[bg23] 11/8/2021 08:42

i thought the 6m numbers were out today?

[wmb194] 08/8/2021 04:37

No, ex-entitlement is 01/09. 02/09 is the record date. The timetable is in the circular.

[riskonricky] 08/8/2021 00:04

In the article. 2 September 2021.

[riskvsreward] 07/8/2021 22:25

Is there an ex-date to qualify for Jackson shares?

[wmb194] 07/8/2021 21:11

As a thumb suck, in July 2020 Athene paid USD500m for 11.1% of Jackson so that valued the whole company at around USD4.5bn / GBP3.24bn @ GBP/USD 1.39. Pru's current market cap is GBP36bn, so all other things equal that would make Jackson about 9%. Edit: Actually, more like 8% as it now owns 88.9% of Jackson. The circular says Pru plans to retain 19.7% of Jackson after the demerger. 69.2% of the economic interest in Jackson will be distributed to shareholders.

Hopefully this week's H1 2021 results will show that Jackson has bounced back from its 2020 USD380m loss. This was in large part attributed due to equity hedging losses related to 2020 equity market turmoil.

[churchill2] 07/8/2021 20:26

No sorry. I would only be questing.

[income investor] 07/8/2021 16:06

Sadly the circular says that for U.K. resident shareholders, the distribution of Jackson shares under the demerger will be treated as a dividend (whether you hold or sell). Disappointing it could not have been structured as a tax qualifying demerger as the M&G demerger was! I don't have any idea the value of the Jackson shares compared to pre-demerger Pru but my guess would be in region of 15% or so. Anyone with a better handle on the values?

[riskonricky] 06/8/2021 18:43

https://www.prudentialplc.com/en/news-and-insights/all-news/news-releases/2021/06-08-2021

[churchill2] 06/8/2021 18:38

Terms of the demerger.

One Jackson share for every 40 Prudential. Something to get your teeth into.

[luderitz] 06/8/2021 15:03

Your telling me! About time it got back to some reasonable share price

[churchill2] 06/8/2021 14:52

A real roller coaster ride currently. Half year results on Wednesday so fingers crossed.

[whatja] 30/6/2021 20:03

Hoping for a bit of magic when the HK raise happens….
I would not have believed it, but HCM a bio pharma trading on AIM and NASDAQ rose 50% on its IPO in HK today.

The situation with Pru may be different as already listed in HK, but it shows that HK does value businesses differently to the west.
As pointed out by Churchill and others AIA trades on a far higher earnings multiple.

I have no doubt the share price will be driven down ahead of the IPO, but it may bounce back significantly higher afterwards.

[churchill2] 18/6/2021 15:54

Hi RobinCap

You may not be wrong only time will tell. I can only point out the Prudential case as I see it.

Business performance in Asia in the first quarter was comparable with the main competitor namely A1A who were equally affected by the closure of the border restricting visitors from mainland China.

Indonesia was badly affected by Covid.

Malaysia had a very strong first quarter.

Jackson management were sacked on the spot so obviously something seriously amiss there.

Prudential see their future in Asia and the sale of Jackson in my opinion for whatever they can get follows on from M&G.

Also comparing the value of PRU/A1A makes an attractive proposition for raising funds in Hong Kong.

Without going into great detail I hope this helps.

[robincap] 17/6/2021 22:47

I am sceptical about Pru and would rather short it - why?
a) Business performance in Asia: Indonesia not growing on a B/S base; HK collapse of new business from CN also material B/S risk regarding interest rates in the current environment; Malaysia not doing great on health.
b) Jackson - it is unclear why the abrupt outing of senior management. Also the valuation of the Athena deal is strange - 80% RBC gain as a consequence of the reinsurance plus 500M for 1/9 ot the company. This means Pru was paid in total about 1.4 M (considering 100% RBC is about 1,1bn.) The inforce yields 100M p.a. which means 1bn as a PV. Hence the total Jackson remaining franchise is valued at about 3.6bn and now a capital raise is needed - despite of the fact that I own the same post demerger.
Hope somebody can help me why I am wrong

[riskonricky] 17/6/2021 18:38

Any ideas why we are moving so abruptly today?

[churchill2] 07/6/2021 12:46

Hi Whatja

According to the CFO the proposed raise of 2-3 billion dollars was to reduce some expensive borrowing. Presumably to strengthen the Balance Sheet.

Not much recognition for the value of Jackson. In a few months time we could have the PRU at £15 and Jackson/M&G at a combined value of £5.

A more exciting story would be an old fashioned scrip issue at fifteen for one. Not popular but I believe Tesla,Apple and even Warren Buffet have tried it.