This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Principal Financial Group Completes Cuprum Acquisition, The Premier Chilean AFP Pension Company

Principal Financial Group, Inc. (NYSE:PFG), a global investment management leader, today announced that the AFP Cuprum S.A. (Cuprum) acquisition is complete. On Oct. 8, 2012, The Principal ® announced a definitive agreement to acquire Cuprum, which required Empresas Penta S.A. and Inversiones Banpenta Limitada to sell their 63 percent ownership in Cuprum pursuant to a public tender offer that also included the remaining 37 percent of publicly traded shares, which has been completed giving The Principal a 90.4 percent ownership stake in Cuprum. The Principal intends to acquire the remaining shares after completion for a total purchase price of USD$1.5 billion less assumed debt.

The transaction was immediately accretive and is expected by the company to benefit 2013 EPS by approximately 12 cents and 23 cents in full year 2014. The transaction is estimated to improve total company ROE by 45 bps in 2013 and 75 bps in 2014.

Cuprum, a leading pension manager in Chile and among the fastest growing, has approximately USD$32.7 billion of assets under management 1. Cuprum products include mandatory employee-funded pension plans, voluntary pension products (APV), and other long-term savings products. The Chilean pension market has consistently grown at double-digit rates driven by a large and expanding middle and affluent market, stable economic growth and robust growth in voluntary pension products.

"The combination of Cuprum and The Principal provides customers in Chile with an unparalleled array of retirement savings, asset management and retirement income solutions,” said Luis Valdes, president and CEO of Principal International. "Cuprum already has a leading pension brand in Chile, and now adds the backing of a global retirement and investment management leader in The Principal."

According to Larry Zimpleman, chairman, president and CEO at The Principal, “the Cuprum acquisition further strengthens our competitive position in one of the most attractive emerging retirement and long-term savings markets. Cuprum represents the sixth such transaction for The Principal in the past two years and adds meaningfully to our fee-based earnings, giving us continued financial flexibility.”

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs