Prudential Demerger of Jackson

[JillyB]

Hello,

I cannot find a discussion on this demerger, so I apologise if it has already been discussed.

As I understand it Jackson shares will be split from Prudential and be listed on the New York stock exchange.

I know 'do nothing' is the preferred stance, but I think I will opt to sell my Jackson shares, largely because my Prudential holding is small so the additional paperwork (I hold these certificated) is not worth the bother.

What I cannot find is the final date to confirm my choice - does anyone here know what it is?

Jilly

[pje16]

@Jilly
Yes
===============================================================================================================================
Ex-entitlement date: 1st September 2021
New shares: After 13th September 2021
Terms: 1 share in Jackson Financial Inc for every 40 Prudential plc shares held
Prudential plc is proposing to separate from Jackson Financial Inc by way of a demerger, subject to shareholder approval at the meeting to be held on 27th August 2021.
=======================================================================================================
It was approved

Like you my holding will be miniscule

[JillyB]

Looks like I have missed the election date.

[pje16]

Me too, but I did not get any options to action a choice, other than Sell Pru
I got told by Interactive Investor that
================================================================================================================================
THE SHARE SALE OPTION
We are aware Prudential is offering a ‘Share Sale Option’ to certain small shareholders to allow them to elect to sell their Jackson shares upon completion of the demerger and therefore effectively receive the cash sale proceeds instead of the new shares. Unfortunately, we are unable to offer the share sale option as we do not meet the criteria set out by Prudential.
================================================================================================================================
I am guessing that this is because it is on the New York Stock Exchange

[daveh]

Me too, but I did not get any options to action a choice, other than Sell Pru
I got told by Interactive Investor that
================================================================================================================================
THE SHARE SALE OPTION
We are aware Prudential is offering a ‘Share Sale Option’ to certain small shareholders to allow them to elect to sell their Jackson shares upon completion of the demerger and therefore effectively receive the cash sale proceeds instead of the new shares. Unfortunately, we are unable to offer the share sale option as we do not meet the criteria set out by Prudential.
================================================================================================================================
I am guessing that this is because it is on the New York Stock Exchange

Its because (unless you held them in an II Crest account) they are held by II in their nominee account and II are not a small shareholder. I moved mine into my ISA from my CREST account as there was a suggestion (on the company board) that Jackson would be worth 200-250p per PRU share which as the demerger is being treated as a dividend would have taken me out of the £2000 dividend allowance. However it now seems that PRU has downgraded the carrying value of Jackson so it may not have been necessary for me to move them for tax reasons.

My plan is to sell the Jackson shares fairly soon after they appear in my account. Not sure if I will have to fill out any forms on II to do so.

If JillyB held them in certificate form she should have been able to use the immediate sell option from Prudential. I was sent the papers for voting direct as my PRU shares were held in CREST, but didn't get any further communication as I moved them into my II ISA before the ex date

[pje16]

OK that explains it
Thanks @daveh

[daveh]

If its of interest Jackson Financial shares are trading at $28 to $29 today. So around £20 per shared, so for me it means I didn't need to move PRU into my ISA.

[pje16]

from this page
https://www.prudentialplc.com/en/news-a ... 06-08-2021

Subject to the Demerger completing, Prudential intends to offer to certain Prudential shareholders and Prudential ADR holders with an aggregate holding of 10,000 or fewer Prudential shares or 5,000 or fewer Prudential ADRs respectively (“Small Shareholders”) a share dealing facility, whereby the shares in Jackson to which they are entitled are sold on their behalf by Equiniti Financial Services Limited (the “Share Sale Option”1). Further details concerning the terms and availability of the Share Sale Option and the definition of Small Shareholders can be found in the Circular.

So rather annoying that II di not do the same

Or is that Crest related @daveh?

[daveh]

from this page
https://www.prudentialplc.com/en/news-a ... 06-08-2021

Subject to the Demerger completing, Prudential intends to offer to certain Prudential shareholders and Prudential ADR holders with an aggregate holding of 10,000 or fewer Prudential shares or 5,000 or fewer Prudential ADRs respectively (“Small Shareholders”) a share dealing facility, whereby the shares in Jackson to which they are entitled are sold on their behalf by Equiniti Financial Services Limited (the “Share Sale Option”1). Further details concerning the terms and availability of the Share Sale Option and the definition of Small Shareholders can be found in the Circular.

So rather annoying that II di not do the same

Or is that Crest related @daveh?

As I understand it the PRU dealing facility is for share holders with less than 10k shares. So you have to be on the register either as a crest account holder, or certificated holder. If you hold the shares in a nominee account the holder on the share register is your broker and they will have lots more than 10k shares in aggregate and that's what counts. Annoyingly at just approx 30 dollars per Jackson share I didn't need to move my PRU shares into my ISA so could have used the PRU dealing facility. Have to wait and see if I can sell easily with II, or if I have to fill in loads of forms first.

I checked today and no sign of the Jackson shares yet. Don't expect them until the 13th at the earliest, but sometimes a placeholder line appears earlier.

[pje16]

As I understand it the PRU dealing facility is for share holders with less than 10k shares. So you have to be on the register either as a crest account holder, or certificated holder. If you hold the shares in a nominee account the holder on the share register is your broker and they will have lots more than 10k shares in aggregate and that's what counts. Annoyingly at just approx 30 dollars per Jackson share I didn't need to move my PRU shares into my ISA so could have used the PRU dealing facility. Have to wait and see if I can sell easily with II, or if I have to fill in loads of forms first.
I checked today and no sign of the Jackson shares yet. Don't expect them until the 13th at the earliest, but sometimes a placeholder line appears earlier.

Thanks again - great knowledge
II have said the process will be initiated on 13th but "Due to the cross border movement, there may be a short delay in updating your account that is outside our control."
Who knew that electonic transfers were hampered by border controls

BTW as you seem to be with II have you filled in their W8BEN-form
https://secure.ii.co.uk/webbroker2/app.sp#/forms
I did mine a while ago

[daveh]

I haven't, hoping I don't need to if I sell before they pay any dividends.

[pje16]

They are trading on the NYSE
and you can do international dealing with II if you complete that form
I haven't done any yet, but filled it in when I joined them a few months ago just in case
PS the ex date was 1st Sept

[scrumpyjack]

This is a link to the Investor Relations website for Jackson Financial

https://investors.jackson.com/home/default.aspx

There is a PDF of a recent presentation to analysts.
https://s28.q4cdn.com/568090435/files/d ... tation.pdf

I note that Prudential intends to 'monetise' (ie sell) at least half their remaining holding within 12 months.

I haven't decided whether to sell immediately or hold on for a while and then sell. I definitely don't intend to hold them long term.

I suspect the accounts have been 'kitchen sinked' in preparation for the float and that all will seem good for some time. (That is a prejudice with not much factual basis, I should say! The accounts at first glance show plenty of red ink recently but suddenly 2021 figures look good)

[daveh]

This is a link to the Investor Relations website for Jackson Financial

https://investors.jackson.com/home/default.aspx

There is a PDF of a recent presentation to analysts.
https://s28.q4cdn.com/568090435/files/d ... tation.pdf

I note that Prudential intends to 'monetise' (ie sell) at least half their remaining holding within 12 months.

I haven't decided whether to sell immediately or hold on for a while and then sell. I definitely don't intend to hold them long term.

I suspect the accounts have been 'kitchen sinked' in preparation for the float and that all will seem good for some time. (That is a prejudice with not much factual basis, I should say! The accounts at first glance show plenty of red ink recently but suddenly 2021 figures look good)

Demerger completed today:
https://www.investegate.co.uk/prudentia ... 30055503L/

Price still on a steady downward trend at $27 today. regular trading begins today.
No sign of my holding appearing in II yet. Like you I'm not sure if I will sell immediately or see if the price climbs once trading has settled down. Don't plan to hold long term. Not sure if I'll have to fill out any forms with II juts to sell them (with them being traded on the NYSE).

[pje16]

Hi daveh
not in my II account either
as I posted earlier you will need to complete the W-8BEN form
https://secure.ii.co.uk/webbroker2/app.sp#/forms

[pje16]

It may not be til next week

Jackson is now an independent company listed on the New York Stock Exchange ("NYSE") with a ticker JXN. Jackson's Class A common stock commenced "when-issued" trading on the NYSE on Wednesday, 1 September 2021 and is expected to commence "regular way" trading on Monday, 20 September 2021.

https://secure.ii.co.uk/webbroker2/rese ... RU.L&tab=3

[daveh]

Hi daveh
not in my II account either
as I posted earlier you will need to complete the W-8BEN form
https://secure.ii.co.uk/webbroker2/app.sp#/forms

I thought the W-8BEN form was only to reduce the US dividend tax from 30% to 15%. Be a bit of a pain if I have to fill it out, but if I have to I will.

[pje16]

I'm not sure the page says
Before you can buy US listed shares, you need to complete a W-8 form.

The forms guidance notes say
Complete the form if you are one of the above wishing to trade in US stocks and shares. Depending on your residency, you may also benefit from treaty taxation relief on your US income upon the completion of this form.

It's an easy form - takes 5 mins
Name, Address, NI number, that's it

[daveh]

I'm not sure the page says
Before you can buy US listed shares, you need to complete a W-8 form.

The forms guidance notes say
Complete the form if you are one of the above wishing to trade in US stocks and shares. Depending on your residency, you may also benefit from treaty taxation relief on your US income upon the completion of this form.

It's an easy form - takes 5 mins
Name, Address, NI number, that's it

I actually didn't have to fill out anything as II populated the form with all my details, but there were lots of questions (in the form of drop down boxes with choices) in advance of filling out the form. Lets hope it works.

[pje16]

Oh i think that's what I must have done
I have a pdf copy of it so thought maybe I filled that in