Administration October 21, 2011
Prudential Agrees to Sell Stake in Afore XXI to Banorte
October 21, 2011 (PLANSPONSOR.com) - Prudential Financial, Inc. announced it has entered into an agreement to sell its stake in Afore XXI, S.A. de C.V., a private pension fund manager in Mexico, to Banorte, a major bank in Mexico.
Reported by Tara Cantore
Proceeds from the sale of Afore XXI are estimated to be $200 million. The book value of the company’s stake in Afore XXI was $75 million, as of December 31, 2010. The transaction is expected to close by the end of the year, following regulatory approval.
According to a press release, while the company has agreed to sell this portion of its business, it still has an active presence in the Mexican market through Prudential Seguros, the company’s life insurance business, Prudential Real Estate Investors, and Prudential Relocation. These businesses are unaffected by the sale of Afore XXI and will continue to operate business as usual in Mexico.
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