View more on these topics

Pru announces delayed £14.5bn rights issue

Prudential has announced the terms of its £14.5bn rights issue to fund a proposed takeover of Asian rival AIA. 

It will be made on the basis of 11 rights issue shares for every two existing shares at an issue price of 104p a share, representing a 39 per cent discount to its theoretical ex-rights price based on the closing price of 542.5 pence on Friday and an 80 per cent discount to that closing price.

The firm revised its offer for AIA after the FSA expressed concern about its capital position. Shareholders will meet to approve the deal on June 7. 

Pru also announced that new business sales and new business pre-tax profits are up 26 per cent and 27 per cent respectively. 

Pru anticipates that the enlarged group will be the leading life insurer in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines and the leading foreign life insurance business in India and China with strong and highly cash generative operations in the US and the UK.

Group chief executive Tidjane Thiam says: “In 2010 we said that we would accelerate our proven strategy to capitalise on the most profitable growth opportunities in our chosen markets and these strong results demonstrate we are delivering on that objective.

“Going forward, we expect momentum in Asia to continue, whilst the economic conditions in the UK and the US stabilise.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm