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

Prudential PLC 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.