© Reuters. FILE PHOTO: The logo of AMP Ltd adorns its headquarters in central Sydney, Australia May 5, 2017. REUTERS/David Gray
(Reuters) – Australian wealth manager AMP (OTC:) Ltd will sell the real estate capital and domestic infrastructure business of its asset management unit, AMP Capital, to Dexus for up to $550 million Australian dollars ($392.8 million), the companies announced on Wednesday. .
The agreement includes an upfront cash payment of A$250 million and additional consideration of up to A$300 million subject to factors including the successful transition of assets under management (AUM), the companies said in statements. separated.
AMP said, however, it was unlikely to receive the full earnout given an expected AUM loss from AMP Capital, now called Collimate Capital, of around A$3.0 billion. .
Dexus, an Australian property company, will also purchase AMP sponsors’ existing and committed stakes in AMP Capital for up to A$450 million.
The deals move the 172-year-old AMP away from its plan to spin off from AMP Capital and will instead opt to sell parts of the unit. (https://reut.rs/36OlpZo)
“The transaction will unlock value for AMP shareholders,” the struggling wealth manager said, adding that it would use proceeds from the sales to repay debt and return capital to investors.
AMP, which is trying to recover from a series of scandals that have dragged down its profits, said it was also remaining in talks about AMP Capital’s international infrastructure investment business after receiving several requests for help. ‘acquisition.
($1 = 1.4004 Australian dollars)