Prudential Financial (PRU) has today announced that it has entered into a definitive agreement with KB Financial Group Inc. (KB), a Korean financial services provider, to sell The Prudential Life Insurance Company of Korea.
Under the terms of the agreement, Prudential Financial will sell 100% of its life insurance business in Korea for cash consideration of approximately 2.3 trillion Korean Won, or US $1.9 billion. These proceeds are expected to be used for general corporate purposes, says the statement.
“This transaction is consistent with Prudential Financial’s strategic focus internationally on Japan and higher-growth emerging markets around the world” PRU states in a press release.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to occur by the end of 2020.
Prudential of Korea is a leading provider of life insurance and other protection products through its Life Planner business and growing general agency channel.
With a Moderate Buy analyst consensus, analysts have an average price target on PRU stock of $75.70 (29% upside potential). Shares in PRU have plunged 37% year-to-date, despite a 26% bounce in the last five days. (See Prudential’s stock analysis on TipRanks)
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