13 Jul 2004
Statement regarding Egg France
Prudential plc notes and supports Egg's announcement today that it is taking the necessary steps to withdraw from the French market.
Prudential remains in discussions regarding a possible transaction with respect to its approximately 79 per cent shareholding in Egg. A further announcement with respect to the conclusion of this transaction will be made, as appropriate, in due course.
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Notes to Editors:
On 22 October 2003 Egg announced that the execution of its French business plan would take longer and require a greater level of investment than Egg was prepared to undertake on a standalone basis. At that time, Egg considered forming an alliance with a strategic partner and, to that end, entered into negotiations, which might have led to a joint venture. These conversations led to other options being presented by various parties and as a result, Prudential announced on 14 January 2004 that it was in preliminary discussions regarding a possible transaction with respect to its 79 per cent shareholding in Egg. On 26 January Prudential announced that while discussions were continuing, it had received unsolicited indications of interest from a number of parties, which may or may not have led to a transaction.
As stated in its separate announcement, Egg expects the cost of closing Egg France to be approximately €170 million (£113 million).
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