AMP share price on watch amid Collimate Capital sale talks with Dexus and 'multiple' parties

AMP is in talks over a potential asset sale…

| More on:
two business men sit across from each other at a negotiating table. with a large window in the background.

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 has confirmed that it is in talks over the potential sale of the Collimate Capital business
  • Collimate Capital is the new name for the private markets business
  • AMP is currently demerging the business but could sell it if it creates more value

The AMP Ltd (ASX: AMP) share price will be one to watch on Tuesday morning.

This follows the release of an announcement by the financial services company.

Why is the AMP share price on watch?

The AMP share price will be in focus today after the company confirmed speculation that it has been having discussions with "multiple" parties over a potential divestment.

According to the release, AMP is in discussions with these parties, which include DEXUS Property Group (ASX: DXS), in relation to the potential sale of the assets and businesses of Collimate Capital.

Collimate Capital is the new name of the company's private markets business, which AMP is currently in the process of demerging. It is a global asset manager and a leader in real assets.

AMP chose the name Collimate as it speaks to its "vision, foresight, and expertise in long-term value creation for clients." The word is a scientific term meaning "to make rays of light or particles parallel" and is used as a metaphor for alignment, clarity, and precision.

Potential sale

No details have been provided in respect to what Dexus or another suitor would be willing to pay for the business. Management has only stated that it will seek to maximise value for shareholders, whether that be through a sale or a demerger.

It commented: "AMP will continue these discussions with a focus on maximising the value for shareholders by getting the best outcome for clients and employees. While these discussions continue, AMP remains in a position to pursue either a sale or demerger of these businesses."

Dexus has also responded to the speculation, confirming that it is in talks with AMP.

It said: "Dexus confirms that it has been engaged in discussions with AMP regarding a possible transaction. Dexus notes that it regularly reviews strategic opportunities that have the potential to enhance Security holder value and at this stage, there is no certainty that a transaction will result."

Both AMP and Dexus intend to update the market as necessary in line with their continuous disclosure obligations.

Motley Fool contributor James Mickleboro 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 Mergers & Acquisitions

two men in business suits sit across from each other at a table with a chess board on it. Both hold their hands to their chins and look down in serious contemplation of their next move.
Resources Shares

'Not ruled out': Could BHP still buy Anglo-American?

This mega-deal might not be as dead as it looks.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Travel Shares

Flight Centre share price higher on acquisition news

The travel agent is betting big on cruises. Here's what you need to know.

Read more »

A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket
Consumer Staples & Discretionary Shares

Myer and Premier Investments shares jump on huge merger news

The two retailers are combining some of their operations. Let's dig deeper into the plan.

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which $9 billion company is acquiring another ASX stock

This big fish is looking to acquire a small fish in a $45 million deal.

Read more »

Two male ASX investors and executives wearing dark coloured suits sit at a table holding their mobile phones discussing the highest trading ASX 200 shares today
Mergers & Acquisitions

TPG Telecom shares rise on $5.2b asset sale to Vocus

The telco is unlocking value by divesting assets. Here's what's happening.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Technology Shares

Why are Appen shares sinking today?

Let's see what is going on with this high-flying tech stock today.

Read more »

A silhouette shot of two business man shake hands in a boardroom setting with light coming from full length glass windows beyond them.
Mergers & Acquisitions

Rio Tinto share price rises on $10b Arcadium Lithium takeover deal

Management believes the deal makes it a global leader in energy transition commodities.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Mergers & Acquisitions

Arcadium Lithium shares rocket 46% on Rio Tinto takeover approach

The mining giant could soon become the third largest lithium supplier.

Read more »