Prudential plans listing or partial sale of its American business

Prudential plans listing or partial sale of its US arm following pressure from activist investor

  • Prudential has been urged by Third Point to spin off its US arm
  • The activist investor wants the Pru to focus on Asian markets instead
  • Third Point built a 5 per cent stake in the Pru 

Prudential is expected to pave the way for a listing or partial sale of its American business this week following pressure from an activist investor.

The FTSE 100 insurer, which demerged its UK business M&G in October, has been urged by Third Point to spin off its US arm and focus on fast-growing Asian markets instead.

Prudential has been urged by Third Point to spin off its US arm

The company’s board, led by chairman Paul Manduca, is reportedly preparing to outline plans to raise cash that could be invested into the Asian business by floating a minority stake in US arm Jackson. 

Another potential option could be to sell a partial stake in Jackson to private equity.

It comes after Third Point revealed it had built a 5 per cent stake in the Pru.

 

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