Prudential PLC, M&G Demerger Documents Approved by FCA -- Update

--Shareholders to get one M&G PLC share for each Prudential share held; M&G to start trading Oct. 21

--General meeting to be held Oct. 15 to approve demerger

--Prudential to declare 19.60 pence a share second interim dividend for 2019, M&G to declare 11.92 pence dividend plus "demerger-related" dividend of 3.85 pence.

--M&G to have premium listing on London Stock Exchange

 
   By Ian Walker 
 

Prudential PLC (PRU.LN) said Wednesday that circulars by Prudential and M&G about the proposed demerger of M&GPrudential have been approved by the U.K. Financial Conduct Authority, and trading in M&G PLC is expected to start on the London Stock Exchange Oct. 21.

The insurance-and-investment business--which was founded in the U.K. in 1848--announced in March 2018 that it planned to separate M&G to enable the independent businesses to maximize their potential performance. Prudential said each group has the platform and scale necessary to operate successfully as a listed company and pursue its own independent strategy.

Upon completion Prudential shareholders will own one share in Prudential and one in newly-listed M&G PLC.

The demerger is conditional upon a number of approvals, including shareholders and meetings will be held in Hong Kong, Singapore and London on Oct. 15.

M&G PLC is expected to have a premium listing on the London Stock Exchange post-demerger.

Prudential said its board currently expects to declare a second interim dividend of about 19.60 pence a share for 2019 and apply its progressive dividend policy thereafter. The dividend is expected to be paid to shareholders in May 2020.

M&G expects to pay a dividend of 11.92 pence a share to shareholders for 2019 in May 2020. It also expects to pay a one-off 'demerger-related' dividend of 3.85 pence a share.

In March 2018, Prudential said that it would spinoff M&GPrudential, the international savings and investments business formed by the merger of asset manager M&G and Prudential's U.K. and Europe insurance operations.

M&GPrudential is led by Chief Executive John Foley. It has also appointed Mike Evans as chairman.

"Independence gives us an exciting opportunity to grow our business by scaling our high-quality savings and investments solutions, both in the U.K. and internationally," said Mr. Foley.

Prudential shares in London at 1355 GMT were trading 18 pence lower, or 1.3%, at 1402 pence.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

September 25, 2019 10:25 ET (14:25 GMT)

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