Prudential should move Asian headquarters to Hong Kong, urges second-largest shareholder Third Point
- Third Point says the insurer needs to split into two publicly listed companies in Asia and US
- The hedge fund holds under 5 per cent of Prudential, making it the company’s second-largest shareholder
Prudential should break itself up into two publicly listed companies focused on Asia and the US to boost shareholder value, urged activist investor Third Point.
The London-headquartered insurer should then move the primary base for its Asian arm to Hong Kong, and that of its US business, Jackson National Life, to Michigan, said Third Point. It should also stop prioritising dividends over investment in Asia.
This deep restructuring would unleash the potential of its fastest-growing business, Prudential Corporation Asia (PruAsia), said Third Point, which manages US$14 billion.
“You have a jewel in the crown that is being overlooked because the company is being managed out of the UK,” said Dan Loeb, who runs Third Point, in a telephone interview with the Post.
The New York-based hedge fund has amassed just under 5 per cent of Prudential’s stock, making it the company’s second-largest shareholder, according to a letter sent to the company’s board of directors and viewed by the Post.
