Prudential's Eastspring Stake Sale Halted Over $3 Billion Valuation Dispute

Prudential's sale of a stake in Eastspring, its asset management arm, has stalled due to a disagreement over valuation. The stake is valued at around $3 billion, but potential buyers are reportedly unwilling to meet that price. The sale is part of Prudential's efforts to raise funds and simplify its business structure.

Prudential Plc's review of its asset management arm, Eastspring Investments, has encountered a significant hurdle, with the potential sale of a stake valued at around $3 billion stalling due to disagreements over valuation and deal structure [1]. The process has paused as prospective bidders have expressed lukewarm interest in acquiring a minority stake in the Singapore-based asset manager, according to people familiar with the matter.

Eastspring, which manages approximately $256 billion in assets under management and has a presence in 10 Asian markets, has been considered for various strategic options, including selling a stake or forming a partnership to diversify into areas such as private credit and dollar-denominated assets [1]. The company's new CEO, Rajeev Mittal, who joined from Fidelity International, has been instrumental in these discussions.

The pause in the review process is a setback for Prudential, which has been seeking to raise funds and simplify its business structure. The company's shares have climbed 57% in London this year, giving it a market value of nearly $35 billion [1]. The potential sale of Eastspring is part of Prudential's broader strategy to align its business with the growing demands of the asset management industry.

Asset managers globally are increasingly seeking greater scale to compete with larger US fund houses and alternative investment firms. Many of the biggest players in Asia and Europe are still owned by banks or insurers and often lack the heft to compete effectively. In December, MetLife Inc. agreed to buy PineBridge Investments' assets outside of China from Hong Kong billionaire Richard Li’s Pacific Century Group, highlighting the trend of asset managers seeking strategic partnerships to enhance their competitive position [1].

Prudential may still explore potential deals for Eastspring in the future. The company has drawn preliminary interest from other global investment firms, indicating ongoing interest in the asset management arm. However, the current valuation concerns and lukewarm interest from prospective buyers have led to a temporary halt in the review process.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-25/prudential-s-review-of-3-billion-eastspring-is-said-to-stall