Prudential Financial, Inc. PRU announced today that it has entered
into a memorandum of understanding with Inversiones La Construcción S.A.
(ILC), the investment subsidiary of the Chilean Construction Chamber, to
acquire an indirect ownership interest in Administradora de Fondos de
Pensiones Habitat S.A. (AFP Habitat), a leading provider of retirement
services in Chile that trades under the symbol HABITAT CI on the Santiago
Stock Exchange. Prudential would expect to acquire indirectly between
approximately 34 and 40 percent of AFP Habitat from ILC, depending on the
results of a pre-closing partial tender offer by ILC to acquire additional
shares of AFP Habitat from public shareholders. Prudential would acquire its
indirect interest in the AFP Habitat shares from subsidiaries of ILC for 925
Chilean Pesos per share, for a total purchase price of approximately US$530
million to US$620 million at current exchange rates. It is expected that the
transaction would result in equal ownership positions for Prudential and ILC,
with a controlling stake in AFP Habitat held through a joint holding company.
The transaction, which is subject to certain conditions, including receipt of
regulatory approvals, is expected to close in the first half of 2015.
“Upon completion, this strategic partnership with ILC will help Prudential
expand its presence in Latin America and participate in the growing Chilean
pension market,” said Bill Yates, President of the Latin American region for
Prudential. “ILC has a long track record of operating excellence, and shares
Prudential's values and long-term commitment to provide high-quality service
to customers. We are pleased to have this opportunity to enter Chile with a
distinguished local partner like ILC.”
Prudential Financial, Inc. PRU, a financial services leader with more
than $1.1 trillion of assets under management as of June 30, 2014, has
operations in the United States, Asia, Europe and Latin America. Prudential's
diverse and talented employees are committed to helping individual and
institutional customers grow and protect their wealth through a variety of
products and services, including life insurance, annuities, retirement-related
services, mutual funds and investment management. In the U.S., Prudential's
iconic Rock symbol has stood for strength, stability, expertise and innovation
for more than a century. For more information, please visit
www.news.prudential.com.
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