The next focusIR Investor Webinar takes places on 14th May with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
regarding splits such as this very recent one,
and presumably also GSK's, there is usually a
pricing effect reflecting the risk that 'something'
might go wrong from an implementation and/or
regulatory perspective, right up to the final point
when a split is fully and formally confirmed. (obv,
one would hope that such risks are being dealt
with progressively as a split is being planned,
but always doubts until final ink has dried!) that
is one reason for the very recent fillip here, imv.
(? presumably also some degree of 'relief' very
recently that no-deal brexit risk appears to have
reduced significantly, which should have helped
with the perceived prospects of the MNG part?)
I think I will plan to get GSK in the run up to their split. If it seems the market can’t judge the splits there would seem to be some low risk percentage point gains to be had.
Doesn't sound quite right jatw: the special dividend for M&G is 3.85p, but the ordinary dividend is 11.92p, so the expected final dividend (March 2020) surely totals 15.77p? (figures from the Prudential Analyst Presentation, page 20, note 3).
The following year would probably not include a special dividend, but would include an interim (usually about 1/3rd of the final), and hopefully the progressive dividend policy means an annual increase of about 5%, so DBs projected figures for 2020/21 are highly credible, and the timescale is slightly less than 18 months too - a very tempting return over that period.
BBD your number is the ordinary divi....there is a special divi expected I can’t recall the precise amount but it was in the order of 3-4p. I think That is how DB got to a larger value for yield.
Re debts levels mentioned by others this was covered extensively at the recent analyst presentation. The debt is all long dated and some have call options (first was 2023 from memory). The CFO said that the debt was covered (interest and principal) by the expected run off of the annuity book. At present They intend to use the capital released from annuities to pay down the debt.
The flip side of putting debt into MNG is that PRU has increased firepower to either drive M&A or to pay a higher than natural dividend.
I see what you mean jatw, about market efficiency: perhaps there were technical reasons why funds could not be moved before the demerger was complete? Share price moved up both before and after, but much swifter after completion: so far, so good! I think the projected yield on MNG is slightly lower than posted elsewhere - the expected div is 15.77p, so doesn't that work out at about 7.5%? Either way, it seems like a tremendous short term return.
This is probably being split so one or both parts can be sold-off overseas in a year or two. Be a nice little earner for the CEO and some bankers. M&G looks swollen with debt and a bit of a mess, so Pru will probably get taken over first.
I was remarking that the market got it a little bit wrong last week.
If they were efficient then the difference between Friday and Monday would not be 6%. The difference would have been more like the 2% gains shown by some other asset managers.
and the re-rating would be in the price.
It will take time for the market to assess both shares....
Personally I feel MNG is starting at a low price......the yield is quite high....would you rather hold MNG AV LGEN SLA? They are all high yield alternatives. A lack of track record as a listed entity may hold it back for a little.
Pru looks more like AIA.....it is priced for growth in Asia...low dividend plus sp growth.
jatw was presumably referring to the fact that the demerger hasn't yet produced the sort of spectacular re-rating that demergerphiles were hoping for? It's early days though, and at one point the net rise was about £1 before falling back. Disappointing to see M&G drop in the afternoon to slightly below it's opening price, but you can't really complain about a combined rise of about 78p, or roughly 5%, on day 1.
It is MNG
Strange comment. As expected = efficient market what's not to like
Thx jatw I found it and it would seem if we and the price of both we get about 1610 which is a nice rise
So much for efficient markets...additional 60p added today.
Quite a low start @ MNG just over 5bn mcap
The press stories of 7-9bn was maybe enterprise value with 3bn debt.
It was expected to be MNG, possibly MNG.L
What’s the ticker code for m&g
What will Pru now do with Jackson? Can’t see the logic of keeping US and Asia together. Lead regulator will be HK rather than UK or US. Head office will inevitably move eastward.
Expect you answered this yourself - the demerger will complete and MG will be trading from 8am on 21 Oct thats from this website. GLA
What is the last day to buy PRU to be eligible for demerger? i.e to get M&G share fir each PRU shares.