Insurance giant Prudential is reportedly mulling over plans to sell its British and American businesses, in a move that will help it fund potential 35.5 billion dollars acquisition of the American International Assurance (AIA).
The sale of British and American businesses is expected to fetch Prudential a total of more than 10 million pounds. Prudential could also sell off its Chinese and Indian assets.
As per experts, Prudential could put British assets for sale within weeks of the AIA deal being accomplished in the autumn.
Shareholders in Prudential fear that it is overpaying for AIA, but Prudential CEO Tidjane Thiam is of the view that the deal will enhance company’s revenue.
On Wednesday, he will unveil prospectus for the 21 billion dollars rights issue which is also a part of company’s plans to fund the deal.
Market analysts expect that shareholders will be given four new shares for every one they possess. It is going to be the largest fund-raising in Britain’s corporate history so far.
Shares in Prudential closed ay 579 pence-a-share on Friday.