How Prudential separated M&G and Jackson in two different demergers

M&G’s business perimeter formed before the separation

Prudential combined its UK and European savings and insurance operation with its investment manager M&G in 2017. In March 2018 it announced plans to separate the combined business. M&G’s shares began trading on the London Stock Exchange when the demerger completed on 21 October 2019. Source 1 Source 2

M&G used a one-for-one distribution

Eligible Prudential shareholders received one M&G share per Prudential share. An in-specie dividend distributes an asset, here shares in the separated company. Each shareholder’s holdings could thereafter include separately tradable shares in the parent and the former subsidiary. Source 1 Source 4

Jackson used a different ratio and venue

The Jackson distribution completed on 13 September 2021 with one Class A share for each 40 Prudential shares. The completion timetable listed 20 September for regular trading on the New York Stock Exchange. The Prudential shares continued to be held unless their owners sold or transferred them. Source 3

Prudential initially kept a stake in Jackson

At completion Prudential reported an initial 19.9% voting interest and 19.7% economic interest in Jackson. It announced an intention to reduce that holding subject to market conditions. Voting interest describes influence over decisions and economic interest describes participation in the value of the business. Source 3

Sources

• Prudential circular and M&G prospectus announcement
• Prudential confirmation of M&G’s demerger and London trading
• Prudential completion announcement and Jackson distribution terms
• Prudential historical shareholder and corporate actions archive