Dai-ichi Life and M&G have entered a long-term strategic partnership, boosting M&G's share price significantly in early trading.
As part of the agreement, Dai-ichi Life will acquire a 15% stake in M&G, pending regulatory approval.
The deal will make Dai-ichi M&G’s largest single shareholder and is projected to generate at least $6bn in new business flows for M&G and $2bn for Dai-ichi Life over the next five years.
Dai-ichi Life plans to acquire the 15% stake in M&G through on-market purchases, without altering M&G’s issued share capital.
Subject to certain conditions, Dai-ichi Life will also gain the right to appoint a director to M&G’s board, provided it maintains at least a 15% shareholding in the company.
Under the terms, M&G will become Dai-ichi’s preferred asset management partner in Europe.