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- AMP (AMP) agrees to sell Collimate Capital’s international infrastructure equity business for $669 million
- DigitalBridge Investment Holdco, a subsidiary of DigitalBridge Group, will pay an upfront fee of $362 million for the purchase, with the remaining funds expected by Q4 2022
- The net capital impact for AMP after the sales is expected to be an increase of approximately $1.1 billion
- AMP shares are up 12.7 per cent, trading at $1.16 at 12:50 pm AEST
AMP (AMP) has agreed to sell Collimate Capital’s international infrastructure equity business to DigitalBridge Investment Holdco for $669 million.
The total Collimate Capital business is valued at $2.04 billion, including retained assets, or $2.5 billion when including the maximum earnouts after selling a domestic infrastructure equity yesterday and real estate business and an infrastructure debt platform in February 2022.
DigitalBridge Investment, a wholly-owned subsidiary of DigitalBridge Group, will pay $462 million upfront for the purchase, with the transaction expected to be complete by Q4 2022.
This includes international infrastructure equity assets under management (AUM) of $9 billion, the management platform, and all of AMP’s seed and sponsor investments in international infrastructure equity funds.
AMP Chair Debra Hazelton said together with the two sales, it “represent a strong outcome for AMP shareholders and Collimate Capital stakeholders”.
“It was clear in our 2021 portfolio review that we had two businesses that would be better separated and simplified, and in doing so realise greater value and that is what we have achieved.”
“In selling these businesses to such respected specialists (like) DigitalBridge … we are confident that the businesses’ clients and the talented teams transferring with them will benefit.”
The net capital impact for AMP after the sales is expected to be an increase of approximately $1.1 billion.
AMP said it will no longer pursue a demerger of Collimate Capital, subject to the completion of the Collimate Capital sales.
The Board determined that, when evaluated against a demerger, the two transactions would deliver greater value and certainty for shareholders, and provide greater stability for Collimate Capital’s clients and employees.
As AMP finalises its capital and liquidity requirements, the company said it will pay down a portion of its outstanding corporate debt and return the majority of the net proceeds to shareholders.
The company will provide a further update closer to transaction completion.
AMP shares were up 12.7 per cent, trading at $1.16 at 12:50 pm AEST.
