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- AMP’s (AMP) joint venture plans have fallen flat as the financial services giant fails to reach an agreement for the sale of its private markets arm
- AMP’s negotiation window with Ares Management Corporation today drew to a close after the U.S firm tabled $1.35 billion for a 60 per cent controlling interest in the faction back in February
- In a brief statement from AMP, the company maintained the two “continue to work towards a potential transaction”, but admitted there is no certainty that a transaction will in fact proceed
- The news follows recent speculation pertaining to AMP’s Chief Executive Officer Francesco De Ferrari’s future within the company
- AMP is off 2.60 per cent following the announcement trading at $1.31 per share
AMP’s (AMP) joint venture plans have fallen flat as the financial services giant fails to reach an agreement for the sale of its private markets arm.
The company today announced the 30-day exclusivity period in its Heads of Agreement with Ares Management Corporation had concluded, with no clear indication as to what comes next.
In the statement, AMP maintained the companies “continue to work towards a potential transaction and Ares has expressed interest in acquiring 100 per cent of the private markets businesses.”
Up for grabs is AMP Capital’s private markets faction which covers infrastructure equity and infrastructure debt, real estate and other minority investments, which U.S investment firm Ares tabled $1.35 billion for earlier this year.
Under the proposed transaction, Ares had eyes to acquire 60 per cent of AMP’s private markets arm and assume management control, while AMP retained 40 per cent.
The companies entered a 30-day negotiation window in a bid to secure a binding transaction, which has drawn to a close effective today with no definitive arrangement to speak of.
AMP advised there is “no certainty that a transaction will proceed or the terms, size or structure on which it would proceed” and what’s more, any transaction would remain subject to the approval of the company’s shareholders.
The news follows recent questions surrounding AMP’s future strategy and leadership of the group, with Chief Executive Officer Francesco De Ferrari’s position a topic of speculation.
AMP is off 2.60 per cent following the announcement trading at $1.31 per share at 1:16 pm AEDT.
