Resolution prepares for Prudential UK assets bid

by Gill Montia

Story link: Resolution prepares for Prudential UK assets bid

Clive Cowdery’s Resolution Ltd has secured funding to bid for UK assets of Prudential, The Daily Telegraph reports.

Prudential is in the process of acquiring AIA, the Asian business of the troubled American International Group, in a £23 billion cash and shares deal.

The insurer has announced plans to raise funds via a £13 billion right issue and possibly an initial public offering of AIA on the Hong Kong Stock Exchange, but is understood to be under pressure from institutional investors to sell assets in the UK to help fund the expansion.

According to the Telegraph, acquisition vehicle Resolution has arranged for Royal Bank of Scotland and Royal Bank of Canada to provide £5 billion in funding in anticipation of a sale.

Further details could emerge tomorrow, when Prudential publishes the prospectus for its rights issue.