Prudential prices $21 billion rights issue at 39% discount

The announcement of the deal, which will be used to fund part of the $35.5 billion acquisition of AIA, clears the way for a Hong Kong listing of Prudential on May 25.

After a delay of a couple of weeks, Prudential plc yesterday announced the details for its upcoming rights offering, saying it is seeking to raise 14.5 billion $21 billion by offering shareholders 11 new shares for every two existing shares at 104 pence apiece.

The confirmation of the deal, which will raise part of the money needed to pay the cash component of the UK insurer's $35.5 billion takeover of AIA Group, also puts Prudential's listings in Hong Kong and Singapore back on track. According to the new timetable, Prudential will start trading in these two markets on May 25.

The next key date will be June 7 when Prudential shareholders will vote on whether...

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