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- A cancelled dividend, profit windfalls and a dashed takeover bid have caused AMP (AMP) stock to plummet in early trade
- The wealth management firm’s underlying profit dropped 33 per cent to $295 million, meaning AMP won’t pay out a final FY20 dividend
- Meanwhile, U.S. private equity firm Ares Management announced overnight it would back away from a $6.36 billion takeover bid
- The AMP suitor walked away from its conditional proposal after completing due diligence but hasn’t detailed what’s behind its reversal
- In some positive news, AMP rebounded from a $2.5 billion loss in FY19 to a $177 million statutory full-year profit
- AMP shares slumped 9.25 per cent to $1.40 per share following the news
A cancelled dividend, profit windfalls and a dashed takeover bid have caused AMP (AMP) stock to plummet in early trade.
The wealth management firm released its full-year results on Thursday morning, unveiling a 33 per cent drop in underlying net profit after tax to $295 million. The profit slump means AMP won’t declare a final dividend for FY20.
AMP chalked the softer result up to COVID-19 headwinds, with Chief Executive Francesco De Ferrari noting the pandemic “unsettled our clients, our workplaces and the broader community.”
But U.S. private equity firm Ares Management dealt another blow to AMP overnight, backing away from a $6.36 billion takeover bid.
Ares first threw its hat in the ring for AMP in October last year, announcing it would commence with due diligence after submitting its conditional proposal.
The bid took AMP stock nearly 20 per cent higher over the late-October session, bringing its share price past $1.50 territory.
Now, however, with the AMP takeover spurned and no final dividend in sight, company stock plummeted as much as 10 per cent on Thursday.
AMP’s CEO didn’t detail why the bid fell through during a media briefing this morning, stating he couldn’t talk for the U.S. suitor.
The ASX 200-lister also tabled an 8 per cent slump in assets under management (AUM) under its wealth management division. Its AMP Capital arm recorded a 7 per cent drop in AUM, striking $13.3 billion from its balance sheet.
Moving into the new financial year, AMP has stressed it will focus on its three-year transformation strategy.
In some positive news, AMP rebounded from a $2.5 billion loss in FY19 to a $177 million statutory full-year profit.
On the back of the financial results and cancelled takeover bid, AMP shares slumped 9.25 per cent to $1.40 per share at 11:35 am AEDT.
