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Prudential PLC (PRU)

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MaraMan
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Re: Prudential PLC (PRU)

#381517

Postby MaraMan » January 28th, 2021, 12:49 pm

For once I have got the timing right! After much dithering I finally lost patience with my Pru shares and sold them yesterday.

Now if only I could do that more often :roll:

MM

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Re: Prudential PLC (PRU)

#381837

Postby Dod101 » January 29th, 2021, 11:26 am

I do not hold but I must say they are not being very friendly to their current shareholder base (which I would assume is probably majority UK based?)

Not only are they considering an unexpected fundraising, but their talk is of doing so by means of a placing in Hong Kong with all the dilution that that will cause. OTOH looking forward the idea of a life insurer concentrating on Asia is an attractive proposition if we project forward 5 years or so.

Dod

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Re: Prudential PLC (PRU)

#381852

Postby Alaric » January 29th, 2021, 11:49 am

Dod101 wrote:I do not hold but I must say they are not being very friendly to their current shareholder base (which I would assume is probably majority UK based?)


Perhaps there will be a cash alternative, but the Jackson demerger isn't friendly either to those who would prefer to avoid the complications of W8-BEN etc. for shares quoted in the USA.

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Re: Prudential PLC (PRU)

#381864

Postby Dod101 » January 29th, 2021, 12:03 pm

Alaric wrote:
Dod101 wrote:I do not hold but I must say they are not being very friendly to their current shareholder base (which I would assume is probably majority UK based?)


Perhaps there will be a cash alternative, but the Jackson demerger isn't friendly either to those who would prefer to avoid the complications of W8-BEN etc. for shares quoted in the USA.


Maybe they will have an 'easy sell' offer?

Dod

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Re: Prudential PLC (PRU)

#381893

Postby daveh » January 29th, 2021, 1:00 pm

Dod101 wrote:I do not hold but I must say they are not being very friendly to their current shareholder base (which I would assume is probably majority UK based?)

Not only are they considering an unexpected fundraising, but their talk is of doing so by means of a placing in Hong Kong with all the dilution that that will cause. OTOH looking forward the idea of a life insurer concentrating on Asia is an attractive proposition if we project forward 5 years or so.

Dod


That was sort of my view. Lets see how they do the capital raise, I will be annoyed if its at much of a discount to the shareprice at the time and existing shareholders aren't able to take part. It won't be so bad if it not at discount, as then would be able to buy in the market if i wanted to maintain my holding size without being disadvantaged.

WRT the JXN shares, I'll wait until the circular with the full information on how it is being done comes out. Hopefully there will either be a cash alternative or a automatic dealing service for small shareholders allowing the JXN shares to be sold immediately. If not I'll sell PRU in the market before the Jackson separation happens and then think about possibly buying back afterwards as like you I think PRU's proposition of becoming a major life insurer for the Asian market is an interesting one.

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Re: Prudential PLC (PRU)

#391753

Postby daveh » March 3rd, 2021, 9:29 am

Full year results can be found here:
https://www.investegate.co.uk/prudentia ... 30059414Q/
https://www.investegate.co.uk/prudentia ... 30109412Q/
https://www.investegate.co.uk/prudentia ... 30159409Q/
https://www.investegate.co.uk/prudentia ... 30199411Q/


PRUDENTIAL PLC FULL YEAR 2020 RESULTS


DOUBLE-DIGIT INCREASE IN ASIA ADJUSTED OPERATING PROFIT AND RECOVERY IN SALES IN H2 2020 CONFIRMATION OF PLANNED DEMERGER TIMETABLE FOR JACKSON

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

· Asia adjusted operating profit2 up 13 per cent (12 per cent) to $3.7 billion

· Asia embedded value up 13 per cent3 to $44.2 billion

· Asia 2020 full year APE sales4 down (28) per cent5 to $ 3.7 billion, with H2 APE sales4 20 per cent10 up on H1 2020

· Pulse downloads around 20 million as of February 20216, with $211 million of sales referrals7 in 2020

· Demerger of Jackson expected to complete in the second quarter of 2021 with bank finance now committed

· Jackson local statutory RBC ratio8 347 per cent at 31 December 2020 in line with guidance

· Central costs reduction of $180 million achieved with effect from 1 January 20219

· Second interim ordinary dividend of 10.73 cents per share, making 16.10 cents per share for the full year

· Considering raising equity of $2.5-3 billion through global offering to institutions and Hong Kong retail investors, after the demerger


Dividend Info here:
https://www.investegate.co.uk/prudentia ... 45300014R/

10.73 US cents payable 14th May, currency notification 5th May; Ex/record dates 25/26th March

Expansion of partnership in Vietnam
https://www.investegate.co.uk/prudentia ... 39219990Q/

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Re: Prudential PLC (PRU)

#391768

Postby scrumpyjack » March 3rd, 2021, 10:27 am

In principle I strongly disapprove of companies ignoring shareholder pre-emption rights unless in crisis, and PRU is certainly not in crisis. So I am not happy about the proposed issuing of shares to institutions and private investors.

On the other hand raising $2.5 -3 Billion is very small compared to their market cap of about $37 billion so any dilution would be small.

They should at least have acknowledged the pre-emption issue but as far as I can see they haven't. Not good for an insurance company, who would normally be annoyed if a company they had invested in behaved in this way.

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Re: Prudential PLC (PRU)

#391806

Postby dealtn » March 3rd, 2021, 12:09 pm

scrumpyjack wrote:
They should at least have acknowledged the pre-emption issue but as far as I can see they haven't.


"The allocation of any offering will take into account a number of criteria including the interests of existing shareholders."

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Re: Prudential PLC (PRU)

#391809

Postby scrumpyjack » March 3rd, 2021, 12:17 pm

dealtn wrote:
scrumpyjack wrote:
They should at least have acknowledged the pre-emption issue but as far as I can see they haven't.


"The allocation of any offering will take into account a number of criteria including the interests of existing shareholders."


Thanks, but that is hardly a gushing defence of shareholder rights!

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Re: Prudential PLC (PRU)

#409194

Postby daveh » May 4th, 2021, 9:45 am

Sterling dividend rate:
https://www.investegate.co.uk/prudentia ... 30044357X/

UK register

Shareholders holding shares on the UK register who have not elected to receive their dividend payment in US dollars will continue to receive the dividend payment in pounds sterling and their dividend will be converted from US dollars to pounds sterling at the rate of one US dollar to 0.7186 pounds sterling.



Accordingly, the amount of sterling payable in cash on 14 May 2021 will be: 7.71pence per ordinary share.

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Re: Prudential PLC (PRU)

#432868

Postby daveh » August 6th, 2021, 10:57 am

Demerger of Jackson

https://www.investegate.co.uk/prudentia ... 30028410H/

Proposed demerger of Jackson Financial Inc. from Prudential plc

Prudential plc ("Prudential") previously announced its intention on Thursday 28 January 2021 to demerge Jackson Financial Inc. ("Jackson"), resulting in two separately-listed companies (the "Demerger").


Upon completion of the proposed Demerger, shareholders will hold interests in both Prudential and Jackson. If you are a Prudential shareholder as of 2 September 2021 (the "Record Date"), you will be entitled to receive one share of Jackson's Class A common stock (a "Jackson Share") for every 40 Prudential ordinary shares you hold on the Record Date. The Jackson Shares are expected to trade on the New York Stock Exchange (the "NYSE") under the ticker "JXN".


This bit may be of interest to small UK shareholders. I will probably take advantage and sell my Jackson Financial shares on demerger

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.

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Re: Prudential PLC (PRU)

#432893

Postby daveh » August 6th, 2021, 1:01 pm

and the circular for the demerger has now been approved and published on the Prudential website:
https://www.investegate.co.uk/prudentia ... 42138783H/

The Circular is available on Prudential's website at http://www.prudentialplc.com/investors/ ... -documents . A copy of the Circular has been submitted to the National Storage Mechanism and will shortly be available for viewing at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .


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Re: Prudential PLC (PRU)

#432906

Postby yorkshirelad1 » August 6th, 2021, 1:50 pm

It looks like the receipt of shares in Jackson will be treated as a dividend, which might catch some people out. It's a new one on me.
https://www.prudentialplc.com/en/investors/shareholder-information/jackson-demerger-transaction-documents

Circular wrote:For Qualifying Shareholders who are resident in the UK for UK tax purposes (a “UK Qualifying Tax Shareholder”), the distribution of Jackson Shares pursuant to the Demerger will be treated as a dividend (irrespective of whether they utilise the Share Sale Option).

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Re: Prudential PLC (PRU)

#432911

Postby scrumpyjack » August 6th, 2021, 2:09 pm

yorkshirelad1 wrote:It looks like the receipt of shares in Jackson will be treated as a dividend, which might catch some people out. It's a new one on me.
https://www.prudentialplc.com/en/investors/shareholder-information/jackson-demerger-transaction-documents

Circular wrote:For Qualifying Shareholders who are resident in the UK for UK tax purposes (a “UK Qualifying Tax Shareholder”), the distribution of Jackson Shares pursuant to the Demerger will be treated as a dividend (irrespective of whether they utilise the Share Sale Option).


It is absurd that they have not been able to, or even tried to, structure this in a way that did not make it a dividend. Some shareholders will be paying 60% income tax on the value of the Jackson shares distributed. It shows how little the city is concerned with private shareholders. It doesn't make any difference to the institutions.

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Re: Prudential PLC (PRU)

#432923

Postby daveh » August 6th, 2021, 2:55 pm

yorkshirelad1 wrote:It looks like the receipt of shares in Jackson will be treated as a dividend, which might catch some people out. It's a new one on me.
https://www.prudentialplc.com/en/investors/shareholder-information/jackson-demerger-transaction-documents

Circular wrote:For Qualifying Shareholders who are resident in the UK for UK tax purposes (a “UK Qualifying Tax Shareholder”), the distribution of Jackson Shares pursuant to the Demerger will be treated as a dividend (irrespective of whether they utilise the Share Sale Option).


Damn, I'll have to see how much a Jackson share is likely to be worth as PRU are in my taxable account. I don't have a massive amount of headroom before breaching the £2000 dividend allowance. So a sale of prudential may be on the cards, or a bed and ISA in advance of the ex date.

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Re: Prudential PLC (PRU)

#432956

Postby scrumpyjack » August 6th, 2021, 4:28 pm

In March the Investors Chronicle said Jackson's value on an embedded value basis was $12 bn. That would represent about 230p per Pru share as things stand. I guess it would sell on a discount to EV but for planning purposes one could take the view that one will be deemed to have received a dividend of about 200p per share when one receives the Jackson shares. Ugh! To sell or not to sell or maybe give the Pru shares to Mrs Scrumpy?

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Re: Prudential PLC (PRU)

#432961

Postby daveh » August 6th, 2021, 4:52 pm

I just lost a post as I'm at work and had to go and do some.

But the MNG demerger was treated as a capital event and I apportioned the cost between the two holdings by the closing prices on the first day of trading (~86:14 PRU:MNG), but that was a 1 for 1 demerger. I wonder why this couldn't be treated the same way?

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Re: Prudential PLC (PRU)

#432963

Postby daveh » August 6th, 2021, 4:57 pm

scrumpyjack wrote:In March the Investors Chronicle said Jackson's value on an embedded value basis was $12 bn. That would represent about 230p per Pru share as things stand. I guess it would sell on a discount to EV but for planning purposes one could take the view that one will be deemed to have received a dividend of about 200p per share when one receives the Jackson shares. Ugh! To sell or not to sell or maybe give the Pru shares to Mrs Scrumpy?


At 1 Jackson share per 40 Pru shares that suggests each Jackson share will trade at ~8000p and suggests I'll have to do something with the PRU shares as that would breach the £2000 dividend allowance for me.

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Re: Prudential PLC (PRU)

#433191

Postby Stan » August 7th, 2021, 10:44 pm

daveh wrote:
scrumpyjack wrote:In March the Investors Chronicle said Jackson's value on an embedded value basis was $12 bn. That would represent about 230p per Pru share as things stand. I guess it would sell on a discount to EV but for planning purposes one could take the view that one will be deemed to have received a dividend of about 200p per share when one receives the Jackson shares. Ugh! To sell or not to sell or maybe give the Pru shares to Mrs Scrumpy?


At 1 Jackson share per 40 Pru shares that suggests each Jackson share will trade at ~8000p and suggests I'll have to do something with the PRU shares as that would breach the £2000 dividend allowance for me.


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

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Re: Prudential PLC (PRU)

#433193

Postby kempiejon » August 7th, 2021, 10:57 pm

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


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