The Lemon Fool

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?)

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.

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

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

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

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."

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.

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".

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.

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 .

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).

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).

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).

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?

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.

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

Tax year                        Dividend allowance
6 April 2021 to 5 April 2022	£2,000
6 April 2020 to 5 April 2021	£2,000