The AMP Ltd (ASX: AMP) share price is in the green in morning trade today, up 0.3%.
Shares in the S&P/ASX 200 Index (ASX: XJO) financial stock closed yesterday trading for $1.11. Shares are currently changing hands for $1.13.
This comes after the company released a non-price-sensitive announcement on its ongoing strategy to simplify its business model.
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What's this about a divestment?
The AMP share price is edging higher after the wealth manager reported it has entered into an agreement to sell its SuperConcepts business to Pemba Capital Partners and a private management group.
Super-Concepts is a self-managed superannuation fund (SMSF) administration and software business. The business has about 500 employees who will transfer out of AMP with the sale.
AMP said the divestment will enable it to focus on its core retail banking and wealth management businesses in a strategy that could provide some tailwinds for the AMP share price in the year ahead.
Once completed, AMP said it will receive an upfront cash consideration of some $8 million, which is subject to typical post-completion adjustments.
All told, the company expects the divestment will result in an accounting loss on sale of around $7 million.
"This is yet another step in simplifying the AMP business and delivering on the promises to focus on retail banking and wealth management," AMP CEO Alexis George said.
George added:
The purchasers are more natural owners of the SuperConcepts business, and we will work closely with them to ensure a smooth transition of ownership and continuity for customers.
The private management group acquiring SuperConcepts along with Pemba Capital includes Matthew Rowe. Rowe will lead the SuperConcepts business following completion.
AMP expects the transaction to complete by the third quarter of this year.
AMP share price snapshot
It's been a wild ride for the AMP share price over the last year.
With a solid rebound since mid-March, shares are up just under 1% for the last 12 months.
