Skip to main content

Market Overview

Prudential To Demerge US Business As Separate Entity, Raise $3 Billion Equity

  • Prudential PLC (NYSE: PUK) is set to demerge Jackson, its U.S. business unit as a separate entity, the Financial Times reports. The move will break-up the 173-year-old life insurer to focus on Asia.
  • The insurance giant had been under pressure from activist investor Third Point to split up and unlock shareholder value.
  • Prudential will demerge the Jackson unit directly to shareholders instead of an initial public offering (IPO) but retain a 20% stake in the company.
  • Post the split, Prudential will be a U.K.-headquartered business with operations in Asia and Africa with stock market listings in London and Hong Kong.
  • Jackson will list on the New York Stock Exchange once the deal is concluded in the second half of 2021.
  • Prudential is raising new equity between $2.5 billion to $3 billion to pay down its debt. The new equity is likely to be marketed to Asian investors as the company wants to increase its shareholder base in the region.
  • Price Action: PUK shares are down 6.96% at $33.97, in the pre-market session on the last check Thursday.

Related Articles (PUK)

View Comments and Join the Discussion!

Posted-In: Insurance Sector Spin-Offs Third Point CapitalM&A News Offerings Top Stories Media

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at