The long-awaited transfer of the AMP real estate and domestic infrastructure equity business to Dexus Funds Management has begun as both parties finalised binding documentation this week for an alternative Transaction structure under a two-stage completion process, with First Completion on Friday 24 March 2023.
Under the alternative Transaction structure, First Completion enables integration of the Collimate Capital business into the Dexus platform. Dexus will be entitled to the economics from First Completion. Final Completion remains dependent on the ownership of China Life AMP Asset Management (CLAMP) being transferred out of the relevant entities that Dexus has agreed to purchase.
AMP is set to receive payment of approximately $337 million from Dexus, comprising $175 million of the $225 million 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 the remaining liabilities, held on the business’ balance sheet.
The remaining $50 million is contingent on the transfer of AMP’s stake in China Life AMP Asset Management by 30 September next year. If Final Completion does not occur by 30 September 2024, this deferred amount would be forfeited by AMP.
AMP chief executive Alexis George said completion of the sale of the remaining AMP Capital business will mark the delivery of a key pillar of the strategy to simplify AMP.
“I would like to express my gratitude to all AMP Capital employees, including those transferring to Dexus and those who will be leaving AMP. Their commitment to their clients and to helping transition the business has been critical to the success of all of the AMP Capital transactions” said George.
“The sale allows AMP to have a clear focus on our go-forward businesses of retail banking and wealth management in Australia and New Zealand. We will continue to build on the hard work of the past 12 months to position AMP to win in those markets, deliver for customers and drive value for shareholders.”
