- AMP (AMP) enters into an agreement to sell subsidiary Collimate Capital’s real estate and domestic infrastructure equity business to Dexus Funds Management (DXS)
- Consideration for the sale comprises an up-front cash payment of $250 million and a cash earn-out of up to $300 million
- Dexus has also agreed to acquire AMP’s existing and committed sponsor stakes in the Collimate platform for up to $450 million
- AMP says it intends to use the proceeds of the sale to pay down some of its corporate debt and return capital to shareholders
- AMP shares down 0.48 per cent to $1.03
AMP (AMP) has entered into an agreement to sell subsidiary Collimate Capital’s real estate and domestic infrastructure equity business to Dexus Funds Management (DXS).
Consideration for the sale comprises an up-front cash payment of $250 million and a cash earn-out of up to $300 million.
AMP said it was unlikely the full earn-out would be received given current expected losses of assets under management (AUM) in the order of about $3 billion.
The company said Dexus would also acquire AMP’s existing ($180 million) and committed ($270 million) co-investment stakes in Collimate’s platform of pooled funds for a total cash consideration expected to be up to $450 million.
Collimate currently has $27.9 billion of AUM, split between real estate ($18.2 billion) and infrastructure ($9.7 billion).
AMP said it intends using the proceeds of the sale to pay down some of its corporate debt and to return capital to shareholders, subject to regulatory and shareholder approval.
Chairwoman Debra Hazelton called the sale a “strong outcome” for AMP shareholders and Collimate Capital stakeholders.
AMP said it would continue discussions in relation to Collimate’s international infrastructure equity business after receiving approaches from parties interested in acquiring the business.
AMP shares were down 0.48 per cent to $1.03 at 2:46 pm AEST.