Prudential reaches settlement in Malaysian dividend dispute

(Sharecast News) - Prudential announced on Thursday that it has reached a full and final settlement in its legal dispute with Malaysian firm Detik Ria over dividend claims related to its joint venture in the country, bringing an end to proceedings that sought over $800m in payouts. The FTSE 100 company said Detik Ria, which holds a 49% stake in Sri Han Suria (SHS) - the holding company of Prudential Assurance Malaysia - had launched legal proceedings in April seeking dividends equivalent to about $833m plus interest.

Under the terms of the settlement, SHS would pay Detik Ria a dividend of $83m, funded from existing resources.

As part of the agreement, Prudential said it also waived a $33m receivable owed by Detik Ria to one of its subsidiaries, stemming from a prior Federal Court decision.

All legal proceedings would be withdrawn, and the parties agreed to a mutual release of liability for all historical claims.

The settlement was governed by the laws of England and Wales and subject to arbitration in Singapore.

Prudential said the unaudited financial impact of the agreement was expected to result in a small increase to IFRS shareholder equity.

Its group financial statements would continue to reflect a 49% non-controlling interest for Detik Ria in PAMB.

At 1213 BST, shares in Prudential were up 2.66% at 963.2p.

Reporting by Josh White for Sharecast.com.