- Prudential has confirmed its intention to pursue a demerger from its US business, Jackson Financial, in the second quarter of 2021.

The separation would see the shares in Jackson distributed to Prudential shareholders.

The demerger, which is subject to shareholder and regulatory approval, would lead to a significantly earlier separation of Jackson from the Group than would have been possible through a minority IPO and future sell-downs.

This accelerated process would complete Prudential's transformation into a group focused exclusively on the high-growth opportunities of Asia and Africa.

At the point of demerger, Prudential would retain a 19.9 per cent non-controlling interest in Jackson, which the group would monetise over time to support investment in Asia.

While Prudential is a strongly capital-generative business, in order to accelerate de-levering during 2021 through the redemption of existing high-coupon debt, it is considering raising new equity of around $2.5-3 billion in Hong Kong or London, or both, with an objective being to increase the group's investor base in Asia.

Such a transaction, if executed, would maintain and enhance the group's financial flexibility in light of the breadth of the opportunities to invest in growth.

At 9:40am: [LON:PRU] Prudential PLC share price was 0p at 1249p

Story provided by