This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Prudential PLC to Buy AIG Asia Unit for $35.5B

Updated from 3:08 a.m. EST

LONDON ( TheStreet) -- Prudential PLC (PUK) said Monday it would buy AIG's (AIG - Get Report) Asian unit for $35.5 billion.

Prudential will pay $25 billion in cash and $10.5 billion in new shares and other securities for AIG's American International Assurance subsidiary.

Prudential said the cash part of the deal will be financed through a rights issue of $20 billion and by issuing $5 billion of senior debt.

"This transaction offers the opportunity to bring together two leading companies, positioning the combined group to capture the future growth opportunity in Asia," Prudential said in a statement to the London Stock Exchange. "We believe the tansaction will both amplify and accelerate our stated strategy to deliver value to our shareholders."

Prudential said the merged company would be the leading life insurance company in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines. It will be the leading foreign life insurance business in China and India.

The news confirms reports earlier Monday and reports over the weekend that Prudential and AIG were "closing in" on a $35.5 billion sale of AIG's Asian life-insurance operations to Prudential.

Under the terms of the deal, AIG won't proceed with its planned initial public offering of American International Assurance.

A sale of the unit would help AIG repay funds it has received from the U.S. government, which bailed out the insurance giant during the depths of the global financial crisis.

Prudential PLC, which is headquartered in London, is not affiliated in any way with Newark, N.J.-based Prudential Financial (PRU).

-- Reported by Joseph Woelfel in New York.

Follow on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AIG $54.98 0.31%
PUK $37.85 -0.13%
AAPL $92.64 -0.64%
FB $119.22 1.20%
GOOG $709.60 1.20%


Chart of I:DJI
DOW 17,738.13 +77.42 0.44%
S&P 500 2,056.00 +5.37 0.26%
NASDAQ 4,727.5360 +10.4420 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs