News

30
Jun

Prudential to present demerger strategy

Prudential UK, which announced in March 2018 that it would be splitting its UK business M&G Prudential, is set to progress with the demerger in the coming months.
The demerger is most likely to occur after the posting of Prudential’s first-half figures in August this year. An investor day is soon to be held where Prudential will lay out its strategy to investors.
Prudential spoke about the demerger when it was first announced in March 2018.
Paul Manduca, Chairman of Prudential plc, said: “The decision to demerge M&G Prudential 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. Both are expected to meet the criteria for inclusion in the FTSE 100 index”.
Mike Wells, Group Chief Executive, said: “Our businesses share common heritage, values and purpose. Looking forward, we believe we will be better able to focus on meeting our customers’ rapidly evolving needs and to deliver long-term value to investors as two separate businesses.
“Following separation, M&G Prudential will have more control over its business strategy and capital allocation. This will enable it to play a greater role in developing the savings and retirement markets in the UK and Europe through two of the financial sector’s most trusted brands, while Prudential plc will be able to focus on the attractive returns and growth potential of its market-leading businesses in Asia and the US.”