AMP flags possibility of more asset sales
AMP has flagged the possibility of more sales of its assets with the board today announcing a portfolio review.
In an announcement issued today the company said the company had recently experienced an increase in interest and enquiries with respect to its assets and businesses.
“The board remains committed to AMP’s transformation strategy and is confident that this will deliver long-term value for shareholders,” it said. “As updated at the 1H 20 results, following the successful completion of the AMP Life sale, AMP is making significant progress in driving its strategy – reinventing wealth management in Australia, growing its asset management franchise (including a repivot to private markets and refocusing public markets), and creating a simpler, leaner business.”
“However, AMP periodically receives unsolicited interest in its assets and businesses, and recently has experienced an increase in interest and enquiries. The Board has therefore decided to undertake a portfolio review to assess all opportunities in a considered and holistic manner, evaluating the relative merits as well as potential separation costs and dis-synergies, with a focus on maximising shareholder value.”
“The review may conclude that AMP’s current mix of assets and businesses delivers the best value for shareholders and may not result in a recommendation to pursue any specific transaction.”
“Throughout the review, AMP business units will remain focused on implementing the company’s transformational strategy and delivering for clients.”
The announcement said Credit Suisse, Goldman Sachs and King & Wood Mallesons had been appointed as AMP’s advisers to manage the review.
Recommended for you
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
AMP has reported a 61 per cent rise in inflows to its platform, with net cash flow passing $1 billion for the quarter, but superannuation fell back into outflows.
Those large AFSLs are among the groups experiencing the most adviser growth, indicating they are ready to expand following a period of transition and stabilisation after the Hayne royal commission.
The industry can expect to see more partnerships in the retirement income space in the future, enabling firms to progress their innovation, according to a panel.
