AMP moves to next phase of simplification
AMP Limited has announced the next phase of a comprehensive review of its balance sheet and cost base after finally closing its long-running sale of AMP Capital to Dexus Funds Management.
The company said the review of the balance sheet would be conducted with a view to returning excess liquidity to shareholders and/or reducing outstanding debt.
AMP chief executive, Alexis George said completion of the AMP Capital transaction enabled a clear focus on banking and wealth management and moved AMP into the next phase of its simplification.
It will have taken close to a year but the transaction for the sale and transfer of AMP Capital’s real estate and domestic infrastructure business to Dexus Funds Management is scheduled for Friday.
The original sale was announced on 27 April, last year, and both companies announced today that the revised transaction structure for the sale would complete on Friday, 24 March.
The revised structure will see AMP received a payment of approximately $337 million from Dexus comprising
- $175 million of the $225 base purchase price for the real estate and domestic infrastructure equity business
- $105 million for sponsor investments; and
- $57 million for the cash, net of remaining liabilities, held on the business’ balance sheet.
The Australian Securities Exchange (ASX) announcement said payment of the remaining $50 million on the base purchase price is contingent on the transfer of AMP’s interest in China Life Amp Asset Management Company out of the sale perimeter by 30 September, next year.
What a sad case of failure AMP has been. From a share price of $8.00+ in 2000 when they were a major sponsor of the Sydney Olympics (and a respected brand), and now around a $1.00. The only thing they have left to sell is the box the family silver was kept in. Sigh
For those lacking in “Institutional Memory”…
That “Family Silver” box has been burnt long ago, to keep the house warm. Metaphorically, the “sons” have long been sent down into the mines, and the “daughters” work at Kings Cross…
Didn’t they demutualise and float at $22?
Earlier, I remember the JV with Westpac in the early 1990’s – “Ampac”. What a cesspool pf failure and poor products – they deserved each other…
Then, there was the McKinsey & Co review, which discovered $89 MILLION in possible internal savings – in mid 1990’s dollars…
Of course, there were the also Super and Savings Plans with 3 years of “Foundation Units”, 2% – 3% MER, and Nil or little Cash Value for much longer, not to mention IP and Trauma products with medical and Contractual definitions which gave little to no chance of paying a benefit!
Let’s go back to the late 1980’s – early 1990’s, with ADL’s [Agency Development Loans] designed to waste vast sums of money in the pointless fight with National Mutual [later Axa] to “Be Number 1” in the market, buying Agencies and loyalties. How many suicides and bankruptcies were there, when the loans were called in overnight… Something like the recent unilateral changing of the BOLR T&C…
AMP, aside from some people on the ground and a few sporadic palpitations and knee jerks; and a barely remembered glorious history, you have ripped off Australians for decades, even generations; and long ago lost any “Name” and “Brand” recognition for trust, integrity, and positive results. Anybody care to review the last few decades Executive Salary Packages versus results and achievements?
AMP, you have done the White Collar Criminal Convict Class of Australia proud! As PT Barnum said: “Never give a sucker an even break”, and you certainly have preyed on trusting, gullible Australians for decades, without restraint or remorse.