AMP considers spinning off Cogent
AMPis considering a make-over or even a sale for its investment administration business,Cogent.
AMP chief executive Paul Batchelor made the announcement in a statement to the Australian Stock Exchange which asserted the value of the Cogent business to AMP, while also saying one option facing the funds management giant was to spin it off.
“Cogent represents a valuable element of our international operations and there is significant potential for future growth,” he said.
“AMP is currently in discussions with a number of parties regarding options for restructuring the business, including a possible sale.”
Batchelor said that AMP will be only making changes to the administration business, “if it was in the clear interests of Cogent’s clients and employees and AMP’s shareholders”.
Cogent, which just over a year ago took AMP Investment Administration under its wing, is essentially a master custodial business that services superannuation funds and investment managers on a global basis. Its main services to its clients consist of record keeping, accounting, tax administration, safe keeping of assets as well as compliance work. It has more than 90 clients worldwide and manages a total of $351 billion.
Batchelor said AMP expected to reach a decision about Cogent’s future in the first half of 2002.
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