(Bloomberg) -- Prudential Plc is considering options including selling a minority stake in its asset manager Eastspring Investments to help broaden the business, according to people familiar with the matter.
The insurer is working with a financial adviser on a review of Eastspring, the people said, asking not to be identified because the deliberations are private. A potential stake sale could value Singapore-based Eastspring at about $3 billion, the people said.
One option includes selling about 30% of Eastspring and forming a partnership that would help it diversify in areas such as private credit and assets in dollar-denominated assets, the people said. Prudential has started sounding out prospective suitors, including other investment firms, the people said.
Prudential could decide to exclude certain markets in a potential transaction, the people said. Considerations are preliminary and no final decisions have been made, they added.
Representatives for Prudential and Eastspring declined to comment.
Prudential’s shares rose as much as 1.6% in Hong Kong on Tuesday, and they are trading at the highest since Nov. 11. Still, the shares are down 24% this year, leaving the company with a market value of about $23 billion.
Rising costs and pressure on fees are prompting asset managers to seek greater scale. Some of the biggest players in Asia and Europe are still owned by banks or insurers, and often lack the heft to compete with US fund houses and alternative investment firms that have seen breakneck growth in recent years.
US insurer MetLife Inc. is in advanced talks to buy PineBridge Investments’ assets outside of China in a deal that could be valued at up to $1.5 billion, Bloomberg News reported in October. In Europe, Allianz SE has been considering combining its asset management arm Allianz Global Investors GmbH with France’s Amundi SA, although talks are now on hold, people familiar with the matter have said.
Eastspring had $271 billion in funds under management as of the end of September and a presence in 11 Asian markets, according to its website.
(Updates with Eastspring response and share price details in sixth paragraph.)
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