Prudential Plc’s review of Eastspring Investments, which included possibly selling a stake or forming a partnership for the asset manager, has stalled amid concerns over valuation and deal structure, according to people familiar with the matter.
The process has paused as prospective bidders were lukewarm about buying a minority stake in Singapore-based Eastspring, the people said, asking not to be identified because the deliberations are private. Eastspring could’ve been valued at about US$3 billion ($3.84 billion), they said.
Other options under consideration included a partnership agreement excluding Eastspring’s operations in countries such as India and China, the people said.
Bloomberg News reported in December that Prudential was considering options including selling about 30% of Eastspring or forming a partnership to diversify in areas such as private credit and dollar-denominated assets.
Prudential may still explore a potential deal for the business in the future, the people said. Eastspring had drawn preliminary interest from other global investment firms, they said.
A representative for Prudential declined to comment.
Eastspring had US$256 billion in assets under management at the end of March and a presence in 10 Asian markets, according to its website. It provides investment services in equities, fixed income, multi-asset and quantitative strategies. Rajeev Mittal was appointed as Eastspring’s new chief executive officer earlier this year. He joined from Fidelity International, where he was managing director and head of Asia.
Prudential shares have climbed 57% in London this year, giving the company a market value of almost US$35 billion. The company is also listed in Hong Kong.
Asset managers have been seeking greater scale as costs rise and fees are squeezed. 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.
In December, MetLife Inc agreed to buy PineBridge Investments’ assets outside of China from Hong Kong billionaire Richard Li’s Pacific Century Group.