Own AMP shares? Here's the latest on the company's planned demerger

What did AMP announce to the ASX?

| More on:
An elderly man holds his chin in concern as he looks at his laptop screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • AMP shares advance 1.95% to $1.045 during midday trade
  • The company provided an update on the Collimate Capital demerger, pushing back the date for the share consolidation
  • Further information on the share consolidation and process for shareholder approval is expected to be provided in due course

The AMP Ltd (ASX: AMP) share price is edging higher today following a company update on the Collimate Capital demerger.

At the time of writing, the financial services company's shares are trading at $1.045, up 1.95%.

What did AMP announce to the ASX?

In its announcement, AMP disclosed that it won't be undertaking a share consolidation in the annual general meeting (AGM) on 20 May as previously advised.

Last month, the company stated in its annual report that a resolution would be put forward regarding the demerger of its private markets business Collimate Capital. However, this date has been pushed back until the vote in June on the proposed demerger.

AMP noted that further information on the share consolidation and process for shareholder approval will be provided prior to the shareholder meetings.

The demerger process will be conducted through a legal process known as a scheme of arrangement. This will include a number of steps such as obtaining approval from shareholders as well as court approval.

When the demerger is complete, Collimate Capital will trade as a separate company listed on the ASX.

AMP said that shareholders will be sent details of the demerger, including voting and upcoming shareholder meetings in due course.

Furthermore, the company mentioned that it has also received enquiries from other parties expressing interest in the Collimate Capital business.

More on Collimate Capital

Following a review of AMP's business portfolio, management declared its intent to separate and demerge Collimate Capital in April 2021.

The reason behind the motive is that AMP is made up of two distinctly different businesses — a domestic retail wealth manager and a global private market (infrastructure and real estate) business with institutional clients.

Management believes that separating the businesses will accelerate their individual growth strategies, enhance customer focus, and deliver value to shareholders.

AMP share price snapshot

Over the past 12 months, AMP shares have fallen by 14% in value. Most of these losses occurred towards the backend of 2021.

Although, when looking year to date, the company's shares are up by around 3%.

Based on today's price, AMP commands a market capitalisation of roughly $3.4 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

man analysing share price
Financial Shares

ASX 200 financial services rivalry: Should I buy Hub24 or Netwealth shares?

Let's compare the pair.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Financial Shares

Forget CBA, Macquarie is tipping a 40% return for this ASX financial stock

Let's see why this stock could be a better buy than Australia's largest bank.

Read more »

A group of stockbrokers sit in a room with several computer screens in front of them as they discuss the Zip share price and Zip's merger with Sezzle
Financial Shares

Up nearly 60% in a year, can Netwealth shares go higher?

Netwealth shares are up more than 200% over the past 5 years.

Read more »

Man smiling at a laptop because of a rising share price.
Financial Shares

Macquarie places 'outperform' rating on this ASX All Ords financial services stock

This financial services stock seems to be going from strength to strength.

Read more »

Woman and man calculating a dividend yield.
Financial Shares

Australian insurance sector: Does Macquarie prefer IAG or Suncorp shares?

Here’s an expert’s views on the insurance sector.

Read more »

A woman sits on a chair smiling as she shops online.
Financial Shares

Which ASX 200 financial share delivered better returns in FY25: IAG, AMP, or Zip?

We compare share price movements and dividend payments for these 3 ASX 200 financial stocks.

Read more »

a man sits in unhappy contemplation staring at his computer on his desk in a home environment, propping his chin on his hand.
Financial Shares

Did Suncorp or QBE insurance shares perform better in the last year?

These insurance providers brought solid returns for investors in the last 12 months. 

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Financial Shares

Up 58% since April, this ASX 200 financial stock just reported record results

The ASX 200 wealth management and technology company has been on a tear since April. Here’s the latest.

Read more »