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- AMP (AMP) is pursuing a demerger of AMP Capital’s Private Markets business
- The demerger would create two more focussed businesses, with AMP retaining a minority stake of up to 20 per cent in Private Markets to assist the future growth of the business
- AMP says the proposed demerger would unlock further value in the Private Markets business by simplifying its structure and establishing it as a new brand
- The demerger is set to be completed in the first half of 2022
- Ahead of market open, AMP shares last traded at $1.13
AMP (AMP) is pursuing a demerger of AMP Capital’s Private Markets business of infrastructure equity, infrastructure debt and real estate.
The proposed demerger follows a decision by the AMP Board to end discussions with Ares Management regarding a potential sale of Private Markets.
The demerger would create two stand-alone businesses, which the company says would be better equipped to pursue growth opportunities and release efficiencies.
In the demerger, AMP Limited would become a retail-focussed, wealth management, investment and banking group in the Australian and New Zealand markets.
Private Markets would become a stand-alone, global private markets investment manager, focussing on asset classes of infrastructure equity, infrastructure debt and real estate.
In the proposed demerger, AMP would maintain a minority stake of up to 20 per cent in Private Markets to assist the future growth of the business.
Once demerged, existing AMP shareholders will receive shares in Private Markets that are proportional to their existing shareholdings in AMP Limited. The AMP Board will restart the share buy-back at up to $200 million.
Private Markets is also expected to be listed on the ASX.
AMP says the proposed demerger would unlock further value in the Private Markets business by simplifying its structure and establishing it as a new brand.
Private Markets will also put a new management equity plan in place to attract and retain talented investment professionals and management.
AMP will now begin the internal separation of Private Markets, including establishing operational independence for management, new branding and a Private Markets board of directors.
In the demerger, Alexis George will become the CEO of AMP, joining the company in Q3 2021. A search process to find a new CEO for Private Markets is currently underway, with David Atkin holding the role in the interim.
The demerger is set to be completed in the first half of next year.
Ahead of market open, AMP shares last traded at $1.13.
