Prudential Plc demerger tipped to take place soon

One banker points to the split happening "straight after the summer"

Prudential Plc demerger tipped to take place soon

Insurance News

By Terry Gangcuangco

It’s been a busy couple of weeks amid results season, and it looks like all eyes are set on Prudential Plc.

The British insurance giant, which is demerging its UK and European savings and investments business M&GPrudential from the group, will be releasing its first-half numbers on August 14. Citing analysts, a report by The Telegraph said this could mean a split date of either September 2019 or March 2020, given that an up-to-date set of financials is needed for such splits.  

One investment banker, as quoted by the publication, went so far as to say that they expect the separation to take place “straight after the summer.”

Earlier this year Prudential Plc described M&GPrudential’s board composition as “set” for demerger.

When all is said and done, there will be two separately listed companies with distinct investment characteristics and opportunities. Stakeholders will have shareholdings in both. An analyst familiar with the matter believes investors will find this attractive.

Meanwhile The Telegraph also cited sources who think the demerger from the UK unit will result in Prudential Plc’s increased focus on markets such as the US and Asia. The latter has been a shining light for the group, based on previous financial results.


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