PRUDENTIAL demerger 21st October

Anybody else holding Prudential shares? what are your thoughts

Ex-entitlement date: 21st October 2019
Terms: 1 share in M&G Plc for every Prudential Plc share held
Pay date: 21st October 2019
Prudential Plc has announced a Demerger, whereby holders will be issued with 1 share in M&G Plc for every Prudential
Plc share held. The ex-entitlement date is 21st October 2019.
Accounts will be updated upon receipt of the stock from our custodian.
Your account will be updated upon receipt of the proceeds


I am new to this. Will the M&G Plc share price will be the same as the Prudential price?

No, it depends on how much the parts are seen to be worth. The share price now is a function of Prudential and MG. So SP = Prudential + MG
After they will be valued separately which might benefit either or not and can lead to a combined price that is lower or higher than it is now. Usually separate companies are valued higher than conglomerates.
Since Prudential is the parent company, it will most certainly be worth more than the off-spun entity.

PRU gapped down a bit (expected)…have to wait and see the value of the M&G shares now

I am seeing pricing on another platform at ~£2.20 for M&G, against the ~£1.2 drop in Prudential’s price.

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well I have done very well out of the demerger so far, waiting to see what dividends M&G will pay now…

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They’ve already declared their dividend policy and final payment for the year - £310m which is equivalent to a £465m annual payment

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