AMP reports 'increase in interest' in its businesses

AMP had earlier planned to sell its New Zealand wealth management business, after the sale of AMP Life to Resolution Life.

In a statement to the stock exchange on Wednesday, AMP’s board said it was committed to AMP’s transformation strategy and confident that it would deliver long-term value for shareholders.

“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 inquiries. 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.”

It said the review might conclude that AMP’s current mix of assets and businesses delivers the best value for shareholders and might 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.”

AMP chair Debra Hazelton said: “The board believes that AMP has high-quality businesses with significant strategic value. The board and management firmly believe in our existing strategy, including a repivot to private markets in AMP Capital and are confident that this will deliver long-term value for shareholders.

“However, we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner.”

Comments from our readers

On 3 September 2020 at 8:42 am Pragmatic said:

The 'increased interest in the AMP business' is because it's broken, with salvage prices being offered. My advice would be for the AMP Board to take the money, and head off to destroy other entities. LOL

On 3 September 2020 at 2:27 pm Amused said:

Well said Pragmatic. Sums things up perfectly regarding the AMP Board. As another commentator noted on here recently how the people in charge at AMP have retained their jobs after the forced sale of AMP Life is one of the true mysteries of life.

A financial services company with a 160 year history forced into selling its life book would surely have to rate as one of the worst examples of poor management in corporate history.

On 3 September 2020 at 9:14 pm Gordon Gecko said:

I'm getting whiplash from all this on again off again sale activity

AMP reports 'increase in interest' in its businesses

AMP Group says it will undertake a review of its assets and businesses that could put its New Zealand business back up for sale.

Thursday, September 3rd 2020, 5:00AM 3 Comments

Comments from our readers

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