After having received approval from Britain's Financial Services Authority and the South African Reserve Bank, the acquisition of Standard Life's health insurance division, Standard Life Healthcare, by Discovery Holdings has been completed, putting PruHealth in a strong position for growth. The finalized acquisition and integration of the companies over the next few months will make PruHealth…
What could have resulted to be a game changer for the insurance industry in Asia appears now to be in the process of falling apart by bits, pieces and big chunks in the failed negotiations between Prudential and AIG to acquire AIA in a US$35.5 billion deal (EUR 29.1 billion).
The response by investors to the first trading day of Prudential shares in Hong Kong and Singapore has been tepid, in part due to the current slump in the markets in Asia, the which augurs a possible undesired response to the big rights issue planned by Prudential with which to finance the US$35.5 billion (EUR 28.9 billion) takeover of AIA.
After having received the tacit approval of the Financial Services Authority in the UK, Prudential has now released details of the controversial US$21 billion (EUR 17 billion) rights issue offering 13.96 billion new shares to help funding the US$35.5 billion (EUR 28.8 billion) purchase of American International Assurance Group Ltd. (AIA) from American International Group (AIG).
The Financial Services Authority (FSA) of the UK have given their approval in principle for Prudential to go ahead with the US$35.5 billion (EUR 28.3 billion) deal made with American International Group (AIG) to purchase American International Assurance (AIA), according to sources familiar with the latest situation on this most audacious deal since the financial tsunami started to be felt globally.
South African financial services provider, Discovery Holdings Ltd. has agreed to buy Standard Life plc's U.K. private health insurance business through its joint venture company with Prudential. Standard Life is set to sell Standard…
Anticipating the details of how Prudential plans to finance the deal to acquire American International Assurance (AIA) in a couple more days, several high-profile investors expect the announcement of the sale of UK and US businesses in favour of Asia to fund the said purchase. The alternative these investors are not very keen on calls for a US$21 billion (EUR 15.91 billion) rights issue to fund the deal.
The alternative of breakup Prudential appears to be gaining momentum now that a key shareholder of the British insurer raises the prospect of opposing the US$35.5 billion deal to buy AIA Group Ltd. Financing of the deal would be partially funded by a giant US$21 billion share sale, which another top investor of Prudential expressed reservations that the rights issue may not gain approval during the upcoming Extraordinary General Meeting.
Once the ink dries on the deals for AIG to divest American Life Company (ALICO) and American International Assurance Company (AIA), there will be a stakeholders shift in the Life Market in Asia, as observed by market analysts.
The Insurance Authority of Hong Kong is said to be analysing the potential impact to the local insurance market resulting from the combination of AIA and Prudential. Of particular interest, whether this deal could diminish the choices of insurance products and services in the market, and what impact would it have to policyholders of the two insurance companies.