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British firm Prudential says to split into two

AFP  |  London 

British giant said today that it will split into two separate firms, in order to focus on strategic priorities in the various regions in which it operates.

The demerger will create M&G Prudential, a savings and investment provider for Britain and Europe, and plc, which will mostly focus on insurance in Asia, the and Africa, the company said in a statement.

No clear timetable was given for the move, which was revealed alongside the group's annual results.

"plc today announces its intention to demerge its UK & from Prudential plc, resulting in two separately-listed companies with different investment characteristics and opportunities," it said in a statement.

"On completion of the demerger, shareholders will hold interests in both and "

The two new groups will both be based in London, where they will have separate listings on the stock market.

"The decision to demerge follows a rigorous review by the board which considered all options, including the status quo, and concluded that it is in the best interest of the group to operate as two separately-listed companies, able to focus on their distinct strategic priorities in their chosen geographies," Prudential said.

"Both are expected to meet the criteria for inclusion in the index."

M&G Prudential, a leading retirement and savings in Britain and Europe, will also sell 12.0 billion (USD 16.7 billion, 13.5 billion euros) of its shareholder annuity portfolio to

The proceeds from this transaction would be used to support the demerger process, it added.

"Following separation, M&G Prudential will have more control over its strategy and capital allocation," said Prudential in the statement.

"This will enable it to play a greater role in developing the savings and retirement markets in the UK and through two of the financial sector's most trusted brands, while will be able to focus on the attractive returns and growth potential of its market-leading businesses in and the US.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 14 2018. 16:15 IST