Prudential hits regulation hurdle in £13bn cash call
PRUDENTIAL has stalled the publication of details of its $21bn (£13.8bn) rights issue aimed at helping to fund its $35.5bn acquisition of AIA in Asia.
The insurer revealed it was in discussions with the Financial Services Authority about the the deal.
The capital structure of the firm is understood to be under scrutiny.
The delay comes after some investors had admitted they were worried at the scale of the cash call.
But Prudential insisted that the deal was still on track.
Chairman Harvey McGrath, Chairman said: “We are entirely committed to the transaction and remain on track to complete within the timing set out on 1 March.
“The work completed since 1 March with the AIA and Prudential teams has convinced me more than ever that the enlarged Group will be in a position to capture sustainable and highly profitable growth and will deliver substantial long term value for our shareholders.”