Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]
July 30 2024 - 9:51AM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the
month of July, 2024
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation
of registrant's name into English)
13/F, One International Finance Centre,
1 Harbour View Street, Central,
Hong Kong, China
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82-
This announcement contains inside information.
Update on consolidation of Prudential's ownership interest in
Prudential Assurance Malaysia Berhad ("PAMB").
Today Prudential plc ("Prudential") has provided an update on its
ownership interest in PAMB, which is Prudential's conventional life
insurance business in Malaysia and forms part of its Malaysian life
insurance segment.
Prudential holds a 51 per cent stake in Sri Han Suria Sdn Bhd
("SHS"), the holding company of PAMB. Detik Ria Sdn Bhd ("Detik
Ria") holds the other 49 per cent. There was an agreement between
Prudential and Detik Ria which allowed Prudential to acquire from
Detik Ria their 49 per cent shareholding in SHS under a put option
arrangement. In 2008, the put option was exercised by Detik Ria for
which it received payments for the shares over a 10 year period in
accordance with the agreement. When Detik Ria failed to complete
the share transfer in 2019, Prudential had to file a legal action
against Detik Ria with the Kuala Lumpur High Court to enforce its
rights. Subsequent
decisions by the High Court and the Court of Appeal were both made
in favour of Prudential in confirming the contractual rights of
Prudential to increase its shareholding in SHS to 100 per cent.
Following a further appeal made by Detik Ria, the Federal Court of
Malaysia has today overturned the previous rulings of the High
Court and the Court of Appeal.
Prudential currently holds a 51 per cent shareholding in SHS, and
its economic interest in PAMB was consolidated at 100 per cent in
its Annual Report and Accounts for the year ended 31 December
2023.
To reflect this Federal Court decision, Prudential will continue to
consolidate the business of PAMB, which remains a subsidiary
controlled by the Prudential Group, but will now reflect a 49%
non-controlling interest in its group financial statements for the
minority shareholding of Detik Ria. In line with the Prudential
Group's policy, operating metrics will continue to be shown before
the effect of minority interests.
The change in accounting treatment of Prudential's ownership
interest in PAMB will be reflected in the Prudential Group's HY24
financial reporting. If it had been applied as at 31 December 2023,
IFRS and EEV shareholders' equity would have been reduced by
marginally less than 5% and marginally less than 4%,
respectively.
The decision has no impact on the business of PAMB at an
operational level. Ownership of and accounting for the Prudential
Group's separate Malaysian takaful business is unaffected. The
Court decision is related to a one-off shareholder dispute at an
intermediate holding company level. Prudential is evaluating next
steps.
We are surprised and deeply disappointed with the Federal Court
decision given previous rulings in our favour by the High Court and
the Court of Appeal.
The outcome of this case does not impact Prudential's control in
respect of PAMB and its operations nor does it affect our service
commitment to our customers. Prudential has been present in
Malaysia for 100 years and has a highly successful life insurance
business. We continue to serve the long-term protection and savings
needs of our customers in Malaysia.
Enquiries:
Media
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Investors/Analysts
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Simon Kutner
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+44 (0)7581 023260
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Patrick Bowes
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+852 9611 2981
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Sonia Tsang
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+852 5580 7525
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William Elderkin
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+44 (0)20 3977 9215
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Darwin Lam
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+852 2918 6348
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Person responsible
The person responsible for arranging the release of this
announcement on behalf of Prudential plc is Tom Clarkson, Company
Secretary.
Notes to editors:
About Prudential plc
Prudential plc provides life and health insurance and asset
management in 24 markets across Asia and Africa. Prudential's
mission is to be the most trusted partner and protector for this
generation and generations to come, by providing simple and
accessible financial and health solutions. The business has dual
primary listings on the Stock Exchange of Hong Kong (2378) and the
London Stock Exchange (PRU). It also has a secondary listing on the
Singapore Stock Exchange (K6S) and a listing on the New York Stock
Exchange (PUK) in the form of American Depositary Receipts. It is a
constituent of the Hang Seng Composite Index and is also included
for trading in the Shenzhen-Hong Kong Stock Connect programme and
the Shanghai-Hong Kong Stock Connect programme.
Prudential is not affiliated in any manner with Prudential
Financial, Inc. a company whose principal place of business is in
the United States of America, nor with The Prudential Assurance
Company Limited, a subsidiary of M&G plc, a company
incorporated in the United Kingdom.
https://www.prudentialplc.com/
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date: 30
July 2024
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By: /s/ Thomas S. Clarkson
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Thomas
S. Clarkson
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Company
Secretary
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