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Prudential PLC (PRU)

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Stan
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Re: Prudential PLC (PRU)

#433194

Postby Stan » August 7th, 2021, 11:01 pm

kempiejon wrote:
Stan wrote:
Daveh I thought that the £2000 tax exemption went in last years tax year did it not?



Nah see https://www.gov.uk/tax-on-dividends
Tax year                        Dividend allowance
6 April 2021 to 5 April 2022 £2,000
6 April 2020 to 5 April 2021 £2,000


I stand corrected, thanks KJ it looks like it’s £2000 until further notice.

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Re: Prudential PLC (PRU)

#433924

Postby daveh » August 11th, 2021, 9:13 am

As I said elsewhere (Taxes Board) I've now bed and ISA'd these (with II, done very efficiently for no charge - used up one dealing credit) at the loss of 3 shares used up in stamp duty and the spread. That should save me having to pay any dividend tax as the Jackson shares at the predicted price would have taken me over the £2000 dividend allowance. Now that they are no longer in my CREST account and are now in II's nominee account it will be interesting to see if i still get access to the free dealing facility to be set up by the PRU for small shareholders?

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Re: Prudential PLC (PRU)

#433952

Postby scrumpyjack » August 11th, 2021, 10:23 am

Pru's results out this morning. As usual extremely opaque accounts with no clear indication of how much the Jackson shares will be worth but they have massively written down their book value to their estimate of its 'fair' value. They have valued it at $3 billion which is well under half its book value as far as I can see! I think they are keeping just under 20% of the Jackson shares and handing out the rest to Pru shareholders and this will be taxable as a dividend, presumably based on the first day closing price

Anyway Pru's own cash dividend stays at 5.3 cents xd 19/8, pay 28/9

The shares go ex the Jackson shares distribution on 2nd Sept, so sell before that if you don't want the Jackson shares.

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Re: Prudential PLC (PRU)

#433968

Postby EthicsGradient » August 11th, 2021, 10:35 am

daveh wrote: Now that they are no longer in my CREST account and are now in II's nominee account it will be interesting to see if i still get access to the free dealing facility to be set up by the PRU for small shareholders?

I don't think you will - the wording in the circular is

"Certificated Shareholders on the UK Register, Hong Kong Registered Shareholders, Shareholders in the Prudential Corporate Sponsored Nominee Service with addresses in the UK, Isle of Man, Channel Islands or EEA, or Registered ADR Holders"

I'm hoping ii is going to make clear what the options are - I don't want to get involved with IRS W-8BEN forms, but neither do I want to pay large currency fees to convert back into pounds, if I can avoid them.

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Re: Prudential PLC (PRU)

#434013

Postby daveh » August 11th, 2021, 11:53 am

EthicsGradient wrote:
daveh wrote: Now that they are no longer in my CREST account and are now in II's nominee account it will be interesting to see if i still get access to the free dealing facility to be set up by the PRU for small shareholders?

I don't think you will - the wording in the circular is

"Certificated Shareholders on the UK Register, Hong Kong Registered Shareholders, Shareholders in the Prudential Corporate Sponsored Nominee Service with addresses in the UK, Isle of Man, Channel Islands or EEA, or Registered ADR Holders"

I'm hoping ii is going to make clear what the options are - I don't want to get involved with IRS W-8BEN forms, but neither do I want to pay large currency fees to convert back into pounds, if I can avoid them.



That's what I was thinking (after I'd asked II to do the bed and ISA, as it didn't occur to me until I'd initiated the transfer). It wouldn't have made a difference to my decision as I wanted to avoid paying dividend tax, didn't want to sell outright and buy back afterwards as I'm not certain the full value of the Jackson shares and the PRU is yet in the price. I might have been tempted to keep the Jackson shares for a while and see what happens except for the complications of W-8BEN forms and US withholding tax.

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Re: Prudential PLC (PRU)

#434018

Postby Stan » August 11th, 2021, 12:08 pm

Nothing advising me about this corporate action from my broker and no I don't want any shares priced in dollars either.

So is the only option open to me is to simple sell all my PRU shares before the 2/9/21 as said on here.

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Re: Prudential PLC (PRU)

#434043

Postby daveh » August 11th, 2021, 12:59 pm

And they have announced their Interims today:
https://www.investegate.co.uk/prudentia ... 30102257I/
https://www.investegate.co.uk/prudentia ... 30172267I/
https://www.investegate.co.uk/prudentia ... 30232264I/
https://www.investegate.co.uk/prudentia ... 30292253I/
https://www.investegate.co.uk/prudentia ... 34552915I/


PRUDENTIAL PLC HALF YEAR 2021 RESULTS



PRUDENTIAL DELIVERS RESILIENT PERFORMANCE AND MOVES FORWARD WITH STRATEGIC TRANSFORMATION



Performance highlights on a constant (and actual) exchange rate basis

· APE sales4 in Asia and Africa up 17 per cent (21 per cent) to $2,083 million, new business profit12 up by 25 per cent (29 per cent) to $1,176 million

· Adjusted operating profit2 from continuing operations1 up 19 per cent (22 per cent) to $1,571 million

· Completion of strategic transformation through proposed demerger of Jackson, planned to complete in September 2021

· Prudential plc continues to consider raising equity of around $2.5-3.0 billion through global offering to institutions and Hong Kong retail investors, after the proposed Jackson demerger



Mike Wells, Prudential plc's Group Chief Executive, said: "We have delivered a resilient performance in the first half of 2021, against a backdrop of continuing economic and social challenges due to Covid-19 and the resulting volatility in consumer activity. Despite the constraints of the environment, our hard-working and dedicated staff and agents have continued to serve our customers and build value for our shareholders, while moving forward with our strategic transformation.



"Our operational performance in Asia and Africa reflects the strength of our strategy and our execution. In the first half of 2021, APE sales4 from Asia and Africa increased by 17 per cent11, while new business profit12 was up by 25 p er cent11. This was delivered through our platform of around 560,000 agents16 and our access to more than 28,000 bank branches15.



"Our agency and bank channels were supported by our digital transformation during the period. We are developing the capability to become a digitally enabled organisation with the capacity to serve 50 million customers by 2025. We are focused on digitalising many of our products, services and experiences so that they can be delivered by Pulse, our digital platform and ecosystem. Since its launch in 2019 to 5 August 20216 Pulse had been downloaded around 30 million times. APE sales4,10 involving Pulse were $158 million in the first half of 2021. Our aspiration is that Pulse facilitates customer acquisition at scale, provides an enhanced customer experience, and acts as a platform for the business with scope for delivering future operational efficiency.



"We are continuing to move toward the proposed demerger of Jackson, the Group's US business, which we plan to complete in September 2021, subject to shareholder approval. The proposed demerger will complete our strategic transformation to focus exclusively on our higher-growth and higher risk-adjusted return businesses in Asia and Africa.



"In order to enhance financial flexibility and de-lever the balance sheet, we continue to consider raising new equity of around $2.5-3.0 billion following the completion of the proposed Jackson demerger. Our preferred route is a fully marketed global offering to institutional investors concurrent with a public offering in Hong Kong to retail investors. As an Asia-focused company, we believe there are clear benefits from increasing both our Asian shareholder base and the liquidity of our shares in Hong Kong. The allocation of any offering will take into account a number of criteria including the interests of existing shareholders and the strategic benefits of enhancing our shareholder base and liquidity in Hong Kong.



"We have been included as a designated insurance holding company under the Hong Kong Insurance Authority's (IA) Insurance Ordinance, meaning that we are now subject to the Hong Kong IA's Group-wide Supervision (GWS) Framework. The Hong Kong IA has confirmed the grandfathering of our $6.0 billion17 of subordinated debt and senior debt as capital. Our GWS capital position is strong, with shareholder surplus8,9 (excluding Jackson) at 30 June 2021 estimated at $10.1 billion, representing a coverage ratio of 383 per cent7. This compares with a corresponding surplus at 31 December 2020 of $9.4 billion5.



"We expect the vaccination programmes being rolled out during 2021 and 2022 to facilitate a gradual return to more normal economic patterns, although the pace of these programmes and their effect are likely to vary substantially, and give a degree of uncertainty over the economic outlook and therefore the performance of the business in the short term. Significant Covid-19 restrictions continue in many markets including Indonesia, Malaysia, Thailand and the Philippines, while more stringent limitations on movement have recently been introduced in India, Singapore and Vietnam, the impacts of which are likely to extend at least into the fourth quarter of 2021. There is also continuing uncertainty over the extent and the timing of the re-opening of the border between Hong Kong and China and we now expect that it will remain closed at least for the rest of this year. However, we are confident that the demand for our products will continue to grow in line with the structural growth in our chosen markets, and that our expanded offering and increasingly digitalised distribution platforms are well placed to meet this demand."



Dividend 5.37c paid 28 September ex 19th Aug record date 20th Aug details in last link at top

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Re: Prudential PLC (PRU)

#434090

Postby EthicsGradient » August 11th, 2021, 2:53 pm

scrumpyjack wrote:Pru's results out this morning. As usual extremely opaque accounts with no clear indication of how much the Jackson shares will be worth but they have massively written down their book value to their estimate of its 'fair' value. They have valued it at $3 billion which is well under half its book value as far as I can see! I think they are keeping just under 20% of the Jackson shares and handing out the rest to Pru shareholders and this will be taxable as a dividend, presumably based on the first day closing price

Anyway Pru's own cash dividend stays at 5.3 cents xd 19/8, pay 28/9

The shares go ex the Jackson shares distribution on 2nd Sept, so sell before that if you don't want the Jackson shares.

That $3 billion (if it's for what they're hiving off) would be in line with the $500m paid in June 2020 by Athene for an 11.1% economic interest in the Jackson business. Prudential are disposing of 69.2% now (and retaining a minority stake), which would be valued at $3117m. However, the Athene deal also involved a reinsurance deal, and I can't work out how that might affect the valuation.

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Re: Prudential PLC (PRU)

#434124

Postby scrumpyjack » August 11th, 2021, 5:02 pm

EthicsGradient wrote:
scrumpyjack wrote:Pru's results out this morning. As usual extremely opaque accounts with no clear indication of how much the Jackson shares will be worth but they have massively written down their book value to their estimate of its 'fair' value. They have valued it at $3 billion which is well under half its book value as far as I can see! I think they are keeping just under 20% of the Jackson shares and handing out the rest to Pru shareholders and this will be taxable as a dividend, presumably based on the first day closing price

Anyway Pru's own cash dividend stays at 5.3 cents xd 19/8, pay 28/9

The shares go ex the Jackson shares distribution on 2nd Sept, so sell before that if you don't want the Jackson shares.

That $3 billion (if it's for what they're hiving off) would be in line with the $500m paid in June 2020 by Athene for an 11.1% economic interest in the Jackson business. Prudential are disposing of 69.2% now (and retaining a minority stake), which would be valued at $3117m. However, the Athene deal also involved a reinsurance deal, and I can't work out how that might affect the valuation.


Jackson must be a business in considerable difficulty if Pru have had to write off 3/4 of its book value to bring the carrying value to what they think the market will value it at! They wrote it down by $7.5 billion. Of course there isn't a value for hiving it off. They are handing out Jackson shares to Pru shareholders with no cash consideration. It is then a question of what price Jackson shares go to on the NY Stock Exchange. I suppose it is conceivable that Athene/Apollo will bid for it in due course? On the basis of the $3 billion estimate, I reckon the notional 'dividend' on which we will get taxed will be about 62p per share, but I might be wrong (based on the fair value of Jackson and the Pru market cap)!

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Re: Prudential PLC (PRU)

#434134

Postby EthicsGradient » August 11th, 2021, 5:45 pm

scrumpyjack wrote:
EthicsGradient wrote:
scrumpyjack wrote:Pru's results out this morning. As usual extremely opaque accounts with no clear indication of how much the Jackson shares will be worth but they have massively written down their book value to their estimate of its 'fair' value. They have valued it at $3 billion which is well under half its book value as far as I can see! I think they are keeping just under 20% of the Jackson shares and handing out the rest to Pru shareholders and this will be taxable as a dividend, presumably based on the first day closing price

Anyway Pru's own cash dividend stays at 5.3 cents xd 19/8, pay 28/9

The shares go ex the Jackson shares distribution on 2nd Sept, so sell before that if you don't want the Jackson shares.

That $3 billion (if it's for what they're hiving off) would be in line with the $500m paid in June 2020 by Athene for an 11.1% economic interest in the Jackson business. Prudential are disposing of 69.2% now (and retaining a minority stake), which would be valued at $3117m. However, the Athene deal also involved a reinsurance deal, and I can't work out how that might affect the valuation.


Jackson must be a business in considerable difficulty if Pru have had to write off 3/4 of its book value to bring the carrying value to what they think the market will value it at! They wrote it down by $7.5 billion. Of course there isn't a value for hiving it off. They are handing out Jackson shares to Pru shareholders with no cash consideration. It is then a question of what price Jackson shares go to on the NY Stock Exchange. I suppose it is conceivable that Athene/Apollo will bid for it in due course? On the basis of the $3 billion estimate, I reckon the notional 'dividend' on which we will get taxed will be about 62p per share, but I might be wrong (based on the fair value of Jackson and the Pru market cap)!

The 3rd link that daveh gave above has the "European Embedded Value" of the whole group at $17.52 (=£12.68) per share at 30 June 2021 (which roughly matches a £13.735 share price at the time), of which the "discontinued US operations" form $1.02. That would be about 89p per share, going by the current price, though that may be the whole current Prudential stake in it, rather than 69.2% of 88.9% which is being separated - which would be 69p, pretty close to your 62p.

Yeah, in the accounts, US operations value goes from $6.28/share(=£4.75) at the end of 2019, to $5.19(=£4.20) at the end of June 2020, to $4.63(=£3.39) at the end of 2020, to $1.02(=£0.74) at the end of June 2021.

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Re: Prudential PLC (PRU)

#435963

Postby daveh » August 19th, 2021, 2:51 pm

The corporate action notification has appeared in my II account, and as I expected the immediate sale option for the Jackson shares is not available. So if the Jackson shares do turn out to be only valued at ~70p/Pru share and not the ~£2/Pru share that was initially suggested higher up the thread I'd have been better not to bed and ISA them and use the immediate sell option from my CREST sponsored account.

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Re: Prudential PLC (PRU)

#437839

Postby daveh » August 27th, 2021, 4:06 pm

Resolution to approve the Jackson demerger passed at AGM
https://www.investegate.co.uk/prudentia ... 46280462K/

and we have a timetable of when things will happen:

Following the approval of this resolution, the proposed demerger of Jackson Financial Inc. ("Jackson") is expected to complete on Monday 13 September 2021, subject to the Prudential Board declaring the Demerger Dividend when it meets on that day.



The shares of Jackson's Class A common stock ("Jackson Shares") are expected to commence when-issued trading on the New York Stock Exchange ("NYSE") on Wednesday 1 September 2021 and are expected to commence regular‑way trading on the NYSE on Monday 20 September 2021.The record time for determining the entitlement to the Demerger Dividend is expected to be on 2 September 2021.


So we should get an idea of the share price in early September, though regular trading won't start until the 20th.

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Re: Prudential PLC (PRU)

#441852

Postby daveh » September 13th, 2021, 12:30 pm

https://www.investegate.co.uk/prudentia ... 30055503L/

The demerger of Jackson financial completes.

Settlement date is today 13th September. regular trading begins 20th September (but they have been trading since 2 September) share price $27 today and is on a down trend.

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Re: Prudential PLC (PRU)

#443752

Postby daveh » September 20th, 2021, 9:15 am

Hong Kong placing:
https://www.investegate.co.uk/prudentia ... 00062197M/

18 September 2021

Announcement of Prudential plc concurrent Hong Kong public offer and international placing to raise up to 5 per cent of issued share capital on Hong Kong Stock Exchange

· Up to approximately 130.8 million new shares available for subscription through a concurrent Hong Kong public offer (up to a maximum of approximately 32.7 million shares if adjusted) and international placing (together the "Share Offer")

· A Prospectus for the Hong Kong public offer is expected to be published on or around Monday, 20 September 2021

· Completion of the Share Offer and commencement of dealings in the new shares on the Main Board of the Hong Kong Stock Exchange are expected on Monday, 4 October 2021

On 11 August 2021, in its half year results, Prudential plc ("Prudential") indicated it was continuing to consider raising new equity following the completion of the demerger of its US business, Jackson Financial Inc. (the "Demerger"). On 13 September 2021, Prudential announced the completion of the Demerger.


Today Prudential announces it intends to raise up to 5 per cent of its issued share capital1, or up to approximately 130.8 million shares, on the Hong Kong Stock Exchange through a concurrent Hong Kong public offer (the "Public Offer") and international placing (the "Placing"). The Public Offer, which consists of up to approximately 6.5 million new shares initially to be issued in Hong Kong, is only available to Hong Kong residents, and includes a preferential offer to eligible employees and agents of up to approximately 1.3 million shares. Subject to the level of any oversubscription in the Public Offer and pursuant to the clawback mechanism as described in the prospectus to be issued for the Public Offer (the "Prospectus"), the total number of shares available under the Public Offer could be adjusted to up to a maximum of approximately 32.7 million new Shares, representing 25 per cent of the total shares initially available in the Share Offer.

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Re: Prudential PLC (PRU)

#446485

Postby daveh » September 30th, 2021, 8:48 am

Results of the Hong Kong placing and public offer:
https://www.investegate.co.uk/prudentia ... 00054674N/

On 25 September 2021, Prudential announced the final offer prices for both the Public Offer and Placing in respect of approximately 130.8 million new shares, representing approximately 5 per cent. of its issued share capital.

Based on the final offer prices for both the Public Offer and the Placing of HK$143.8 per Offer Share, the net proceeds from the Share Offer to be received by Prudential, after deduction of the underwriting fees and other estimated expenses payable in connection with the Share Offer, are estimated to be approximately HK$18.5 billion or US$2.4 billion.

The approximately 6.5 million Public Offer Shares initially available under the Public Offer have been over-subscribed. Of the approximately 130.8 million total Offer Shares to be allotted under the Share Offer, approximately 6.5 million have been allocated to the Public Offer and approximately 124.2 million have been allocated to the Placing.

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Re: Prudential PLC (PRU)

#451404

Postby pje16 » October 19th, 2021, 7:44 pm

Potential Scam call
Someone, didn't catch their name, called my dad and when he suspects something he gives them my number as he knows my red flag alert is set to high and I won't take any nonsense.

They called me, it was hard to hear as it was from the States, but the gist of it was, they said he had shares in Prudential and there was some kind of confidential (red flag alert!) deal being done and was I the person to deal with.

The only way my dad would have those shares was via my mum who passed away 4 years ago and we had all forgotten she had shares in the Pru, so neither he or I have any idea how they were transferred to him
She and I got both got some years ago, from memory something to do with the Pru owned Egg credit card - anyone remember that?

Anyway they are going to email details - an hour later nothing so far

has anyone else had a call like this?

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Re: Prudential PLC (PRU)

#451413

Postby Alaric » October 19th, 2021, 8:08 pm

pje16 wrote:has anyone else had a call like this?


In the days when many people had paper share certificates, potential scammers would periodically get hold of the list of shareholders and contact them with similar offers. The scam is that you have to pay them a fee before the takeover or whatever can take place.

Prudential has recently demerged into an international business, still called Prudential and a UK business called M&G. So if your family members do still hold Prudential, they should also have received M&G.

Wiki has this to say about Egg
https://en.wikipedia.org/wiki/Egg_Banking

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Re: Prudential PLC (PRU)

#451429

Postby pje16 » October 19th, 2021, 8:48 pm

Thanks for the reply @Alaric
They did not ask for money
that is the main reason to suspect a scam
I have now heard from them
and think it is genuine
I have look up the company and they seem genuine
I have a pdf form to fill in asking for nothong more than the name of the shares and how many we own
I do have to sign which includes agreeing to confidentiality

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Re: Prudential PLC (PRU)

#451434

Postby vrdiver » October 19th, 2021, 9:02 pm

pje16 wrote:Thanks for the reply @Alaric
They did not ask for money
that is the main reason to suspect a scam
I have now heard from them
and think it is genuine
I have look up the company and they seem genuine
I have a pdf form to fill in asking for nothong more than the name of the shares and how many we own
I do have to sign which includes agreeing to confidentiality

Just a note of caution. The scam may be that they want to charge you for some services to reconnect you to your shares. If you had Pru shares, you should also have M&G (MNG) and now Jackson shares as well. Also the dividends.

Before signing anything (and note that nobody here is alerting to hush-hush deals that we might miss out on) I'd want to know much more about what I was committing to, including any finders fees etc

If your dad had a paper certificate, he should be on the register of shareholders, or at the very least the company should be able to tell him how to get a replacement. From that he should be able to get everything else.

Ask yourself, even if not a scam as in "illegal", are they trying to sell you a service that you actually don't need? And I am using the word "sell" in its widest meaning, including fees deducted from money or shares recovered.

VRD

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Re: Prudential PLC (PRU)

#451435

Postby pje16 » October 19th, 2021, 9:08 pm

Thanks @vrdiver

I have Pru shares (acquired in the same way as my Mum did)
They were Egg shares acquired by Pru and I now have M&G and Jackson
I do wonder, as they have Dad's address, where the dividends for the last 4 years have gone and where takeover information was sent
Thanks for the heads up, but they won't be getting a penny out of me


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