Prudential Plc intends to divest a 2% stake in the second-largest asset manager in India, potentially generating up to $327 million, to meet minimum public shareholding requirements.
According to documentation filed with the stock exchange on Wednesday, Prudential Corporation Holdings Ltd., a subsidiary of the British insurer, plans to sell 9.9 million shares of ICICI Prudential Asset Management Co. on August 27.
Prudential is offering these shares at a discount of 2 to 7 percent from the last closing price and expects to raise an amount between $311 and $327 million, according to the deal terms.
The transaction is being managed by ICICI Securities Ltd. and BofA Securities India Ltd. Currently, Prudential Corp. holds a 34.59 percent stake in ICICI Prudential AMC.
Eight months ago, the British insurer sold $1.4 billion worth of shares of this asset manager during its initial public offering and pre-IPO placement. Since then, ICICI Prudential AMC has grown by 48 percent. The lock-up period for Prudential ended in June.
This subsequent sale will bring the total stake held by the founding group in the asset manager to 85.6 percent. Indian law mandates that listed companies maintain a minimum public float of 25 percent.