Prudential PLC is offering a one-off dividend of around £100 million, equivalent to about 3.85 pence per share, related to the proposed demerger of M&GPrudential.
The planned dividend is in recognition that M&G will be operating without incurring certain costs, such as debt interest costs, for the majority of the 2019 financial year.
Prudential announced in March 2018 that it plans to demerge its U.K. and Europe business from its international business, which would result in two separately listed companies.
The proposed demerger is expected to be completed Oct. 21. This will be followed by the admission of M&GPrudential's shares for trading on the London Stock Exchange under the name M&G PLC.
Shareholders will hold interests in both Prudential and M&GPrudential upon the completion of the proposed demerger.
After the demerger, Prudential will consist of businesses in Asia, Africa and the U.S. The company will be regulated in Hong Kong but its share will remain listed in London, the Financial Times reported.
