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Intention to pursue Private Markets demerger

Today we have announced AMP’s intention to pursue a demerger of our AMP Capital infrastructure equity, infrastructure debt and real estate businesses which are collectively referred to as Private Markets.

As we advised in September, AMP has undergone a portfolio review which assessed the alternatives of a sale or separation of Private Markets. Both options proved to support the acceleration of growth in this business. This review included discussions with Ares Management Corporation (Ares), a US-based investment manager.

Despite constructive discussions with Ares regarding a sale, we have not reached an agreement which we believe delivers appropriate value for our shareholders.

The AMP board believes a demerger would unlock greater value in our Private Markets business by simplifying its structure, providing operational independence and enabling it to establish a new brand.

Through this process we would create two separate, more focused businesses:

  • AMP Limited: a retail-focused, wealth management, investment and banking group with scale and market-leading positions in Australia and New Zealand, to be led by incoming Group CEO Alexis George. AMP would retain a minority stake in Private Markets of up to 20 per cent to participcate in the future growth of the business.
  • Private Markets: a leading global private market investment manager with a strong performance track record in differentiated asset classes of infrastructure equity, infrastructure debt and real estate, and capabilities to expand into attractive growth adjacencies.

A demerger of Private Markets would be subject to required regulatory approvals and approval from AMP shareholders. Under the proposed demerger, Private Markets is expected to be listed on the Australian Securities Exchange.

As part of the demerger, AMP shareholders would receive shares in Private Markets proportional to their existing shareholding, after taking into account any shares to be retained by AMP Limited.

Having concluded the portfolio review, the Board will restart the on-market share buyback of up to A$200 million.

Further detail is available in our media release. AMP will continue to keep shareholders informed on the progress of the demerger via email and our website.

 

Debra Hazelton

23 April 2021