Tag Archives: AMP

AMP Australia is close to agreeing a joint venture with Ares: source | Instant News


FILE PHOTOS: The logo of AMP Ltd, Australia’s largest retail wealth manager, adorns their headquarters located in central Sydney, Australia, May 5, 2017. Photo taken May 5, 2017. REUTERS / David Gray

SYDNEY (Reuters) – Australia’s AMP Ltd and former US-based Ares Management applicants are close to agreeing a joint venture that would give American funds control over its asset management business AMP Capital, sources with knowledge of the deal said.

The arrangement, which could be finalized and announced in the next week, will utilize Ares’ distribution network to distribute the AMP investment fund, the person said, asking not to be named because negotiations are private.

The AMP representative, who on February 11 said Ares had withdrawn a A $ 6.36 billion ($ 5.03 billion) takeover offer for the entire company, declined to comment.

Ares’ representatives also declined to comment when contacted by Reuters.

Bloomberg reported on Tuesday that the deal could value the asset management business more than A $ 3 billion and that AMP would retain a minority stake, citing people with knowledge of the matter.

Following a review in the past six months seeking to find a buyer for AMP as a whole or its unit, the Sydney-based company said last week it had closed all but one process.

Its Australian and New Zealand wealth management business and banking division, are no longer under review but will continue to negotiate with Ares about potential sales or partnerships involving AMP Capital.

The deals are uncertain, said Chief Executive Francesco De Ferrari at the time.

($ 1 = 1.2653 Australian dollars)

Reporting by Paulina Duran in Sydney; Edited by David Evans

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AMP Australia’s purchase offer from Ares Management for US $ 4.5 billion | Instant News


REUTERS: Australia wealth manager AMP Ltd on Monday said the buyout offer from US-based Ares Management Corp has an implied value of AUS $ 1.85 per share, valuing the proposal at AUS $ 6.36 billion (US $ 4.47 billion) .

The bid price represents a premium of 21 percent over AMP’s last closing price of AUS $ 1.53.

AMP first announced its acceptance of the offer on Friday, saying discussions were still in the early stages.

(Reporting by Rashmi Ashok in Bengaluru; Editing by Daniel Wallis)

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Ares Management’s offer to buy AMP Australia for $ 4.5 billion | Instant News


FILE PHOTOS: The logo of Australia’s largest wealth manager, AMP Ltd, adorns their headquarters building in Sydney, Australia, 28 October 2016. REUTERS / David Gray

(Reuters) – Australian wealth managers who are battling AMP Ltd AMP.AX on Monday said a bid to buy from Ares Management Corp. based in the US ARES.N has an implied value of A $ 1.85 per share, valuing the proposal at A $ 6.36 billion ($ 4.47 billion).

The bid price represents a premium of 21% over AMP’s closing price of A $ 1.53 on Friday, when stocks had already surged after AMP announced acceptance of the offer the previous day.

In a brief update, the Sydney-based company said talks were at an early stage between itself and Ares, and there was no certainty over pricing.

Ares’ offer comes at a time when AMP’s shares have lost more than two-thirds of their value since a public investigation in 2018 exposed systemic errors at the company including charging fees for advice that was never given, taking insurance premiums from the accounts of the dead. clients, and mislead regulators.

Earlier this year, AMP handed over its position as Australia’s largest wealth manager to IOOF Holdings Ltd. IFL.AX after a rival bought National Australia Bank Ltd. NAB.AX financial advisory arm.

Reporting by Rashmi Ashok in Bengaluru; Edited by Daniel Wallis

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AMP Australia accepts a takeover offer from Ares Management | Instant News


(Reuters) – AMP Ltd AMP.AX said Ares Management Corp. based in the US ARES.N has made a non-binding bid to buy out troubled Australian wealth managers, sending its shares soaring to the highest in more than 17 years.

FILE PHOTOS: The logo of AMP Ltd, Australia’s largest retail wealth manager, adorns their headquarters which is located in the heart of Sydney, Australia, May 5, 2017. REUTERS / David Gray

The Sydney-based company said discussions were at an early stage and did not reveal the value of the offer. AMP had a market value of A $ 4.40 billion ($ 3.1 billion) as of Thursday.

Australian media, which first reported on the takeover discussions, said Ares had offered about A $ 5 billion. Ares declined Reuters requests for comment.

AMP shares jumped 21.5% in early trading to A $ 1,555, the highest level since early September.

The wealth manager’s stock has lost more than two-thirds of its value since a public investigation in 2018 exposed systemic errors at the company including charging fees for advice that was never given, taking insurance premiums from the accounts of deceased clients, and misleading regulators.

The disclosures led to the resignation of the chairman and CEO, and the loss of another chairman this year through handling complaints of employee misconduct.

The client has left the company, with net cash outflows of about A $ 2.4 billion from its flagship fund management unit in the third quarter.

AMP sparked talks about a buyout or liquidation in early September when all of its assets were under review.

On Friday, it said it had received “significant” interest in its assets and was evaluating various options, including sticking with its own three-year settlement plan.

AMP handed over its position as Australia’s largest wealth manager to IOOF Holdings Ltd IFL.AX after a rival bought National Australia Bank Ltd. NAB.AX financial advisory agency in August.

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Vinay Dwivedi and Stephen Coates

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AMP canceled the sale of the New Zealand wealth management unit amid coronavirus disruption | Instant News


(Reuters) – Australia AMP Ltd (AMP.AX) has canceled plans to divest New Zealand’s wealth management unit after bids for the unit were less than expected, citing disruptions caused by a coronavirus pandemic on the economy and financial markets.

FILE PHOTOS: The AMP Ltd logo, Australia’s largest retail wealth manager, decorates their headquarters located in central Sydney, Australia, 5 May 2017. Photo taken 5 May 2017.REUTERS / David Gray

The country’s largest wealth manager said on Friday that it held talks with a number of parties regarding business sales, which were once valued at between NZ $ 300 million ($ 182.58 million) and NZ $ 500 million. But he said with offers that failed to meet his targets, he would instead focus on expanding units in existing markets.

Investors shrugged off the change of plans, with AMP shares rising 4.4% at 0413 GMT, outperforming a 0.7% rise in the broader market.

But that happened when a series of mergers and acquisition agreements for Australia faced lower prices, with advisers and bidders having difficulty reaching the desired price tag for assets during the coronavirus crisis.

In March, various sources told Reuters that bidders for the Australian and New Zealand Banking Groups (ANZ.AX) UDC Finance car lenders lowered their offer. The private equity battle to control the media and entertainment company Village Roadshow (VRL.AX) is also expected to see lower prices.

Last month, Canadian Couche-Tard Alimentation (ATDb.TO) walks away from the proposed purchase of the Caltex Australia gas station operator (CTX.AX), citing the impact of the virus outbreak.

AMP said it would provide further details of its business plan along with half-year results in August. It reported a decline of A $ 19.4 billion in first-quarter assets managed in all units in April, amid a decline in equities and commodity valuations triggered by a coronavirus outbreak.

‘FIRST ATTACK’

In a separate statement on Friday, AMP said more than two-thirds of the shareholders who voted at its annual general meeting opposed management’s resolution regarding executive payments, with 67.25% of the votes cast on remuneration reports.

The results came after Chief Executive Francesco De Ferrari’s short-term incentive plan was increased to 200% of his base salary in February, even when the company posted its biggest annual loss in 17 years.[nL4N2AC4EK[nL4N2AC4EK[nL4N2AC4EK[nL4N2AC4EK

Disagreement of shareholders is a setback for AMP because it seeks to restore its reputation after a public inquiry revealed widespread improperness in its operations, including efforts to mislead regulators.

More than 25% of the shareholder vote cast against effective payment resolution is the ‘first strike’ under Australian financial law. If the resolution is rejected for two consecutive years, the entire board can be dissolved.

Reporting by Rashmi Ashok and Shashwat Awasthi in Bengaluru; Editing by Grant McCool and Kenneth Maxwell

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