Prudential settles Malaysian dividend dispute for $83 million

Published 31/07/2025, 10:08
Prudential settles Malaysian dividend dispute for $83 million

LONDON - Prudential plc (LSE:LON:PRU) has reached a settlement with minority shareholder Detik Ria Sdn Bhd over a dividend dispute related to their joint ownership of Malaysian insurance operations, the company announced Thursday.

Under the settlement terms, Detik Ria will receive $83 million as a dividend payment from Sri Han Suria Sdn Bhd ( SHS (HN:SHS)), the holding company of Prudential Assurance Malaysia Berhad. Prudential has also agreed to waive $33 million previously owed by Detik Ria to one of its subsidiaries.

The agreement resolves legal proceedings initiated by Detik Ria in April 2025, which had sought approximately $833 million plus 5% interest in dividend claims. Detik Ria holds a 49% stake in SHS.

According to the statement, all legal proceedings related to the dispute will be withdrawn. The settlement includes a mutual release from all ongoing claims, with both parties agreeing not to raise new claims for past matters. The agreement is governed by English and Welsh law and subject to Singapore arbitration.

Prudential indicated that the settlement is expected to have "a small increment" to the Group’s IFRS shareholder equity. The company will continue to reflect Detik Ria’s minority shareholding as a 49% non-controlling interest in its group financial statements.

The settlement concludes a dispute that had been previously referenced in company announcements, including one on April 30, 2025. Prudential said the dividend payment will be made from existing resources.

Prudential operates life and health insurance and asset management businesses across 24 markets in Asia and Africa. The company maintains dual primary listings on the Hong Kong and London stock exchanges.

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