Prudential PLC to Separate Jackson Through Demerger; Mulls Equity Raise

   By Adria Calatayud 
 

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 its Asian markets.

The FTSE 100 insurer said the proposed demerger of Jackson from the group, set to take place in the second quarter, would accelerate the separation process and complete its transformation to focus exclusively on its high-growth Asia and Africa businesses.

Under the demerger, shares in Jackson would be distributed to Prudential shareholders, the company said. Prudential said it would retain a 19.9% noncontrolling interest in Jackson, which it would seek to monetize over time to support investment in Asia.

A demerger would lead to an earlier separation than would have been possible through a minority IPO, Prudential said. The plan is subject to shareholder and regulatory approval, the company said.

Prudential also said it has appointed former MetLife Inc. chief Steven Kandarian as nonexecutive chair of Jackson's board.

The company 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.

London-listed shares in Prudential at 0845 GMT were down 9.8% at 1,209.50 pence.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

January 28, 2021 04:09 ET (09:09 GMT)

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