Third Point LLC, in Letter, Says Prudential PLC Should Separate US and Asian Businesses

   By Stephen Nakrosis 
 

Investment fund Third Point LLC sent a letter to the board of Prudential PLC on Monday, suggesting Prudential "separate the company's Asian and United States operations to increase investment in both businesses, optimize growth, and drive higher valuation."

The letter was signed by Daniel S. Loeb, founder and chief executive of Third Point.

In the letter, Third Point said entities it managed have amassed a stake of just under 5% in Prudential, adding it is now Prudential's second-largest shareholder.

Third Point also said the "two separately managed franchises, Prudential Corporation Asia and Jackson National Life, have distinct strengths but share no discernable benefit from being operated under the same corporate umbrella." Third Point said it is asking Prudential's board to separate Jackson and PruAsia, and create two publicly listed companies that each has "its own long-term strategy."

Third Point said it hoped to "collaborate with you to effectuate these important changes," adding it expected the majority of Prudential's holders will share its views.

Prudential PLC didn't immediately respond to a request for comment.

--Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

February 24, 2020 13:05 ET (18:05 GMT)

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