Prudential share price tumbles as Jackson Life demerger gets pushed back
Prudential’s demerger of its US arm Jackson Life has been pushed back to the second half of the year, the insurer announced today, causing its share price to tumble.
The group had originally hoped to complete the demerger in the second quarter of this year, however it has now been pushed back to Q3 or later.
News of the delay caused Prudential’s share price to tumble, falling four per cent following the announcement.
Analysts had expected the demerger to take place this month.
The group said it was still mulling an equity raise of up to $3bn following the demerger to boost its balance sheet.
Prudential chief executive Mike Wells said: “The US demerger will complete Prudential’s structural transformation into a business solely focused on the growth opportunities of Asia and Africa.”
Last year Prudential spun off its European funds unit M&G.