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AMP receive buyout offer from US investment company

Friday 30th of October 2020

In a statement released this morning, AMP have confirmed that they have “received an indicative, non-binding, conditional proposal from Ares Management Corporation, a US-based company, to acquire 100% of the shares in AMP Limited by way of scheme of arrangement”.

Ares Management Corporation is a global investment manager operating across the credit, private equity and real estate markets. Founded in 1997, Ares currently has US$179 billion assets under management.

The release from AMP notes that discussions on the proposal are at a very preliminary stage and there is no certainty that a transaction will eventuate.

The announcement comes as AMP continues its portfolio review announced on September 2, 2020. The review sees AMP assessing a range of options including continuing to pursue its three-year transformation strategy.

AMP have been under the spotlight recently with their highly publicised split between AMP Wealth Management NZ and AMP Capital. A move which saw AMP Capital lose its actively managed investment portfolios to passive management from another US-based investment manager BlackRock.

AMP’s KiwiSaver fund delivered the lowest returns in each timeframe, except the past quarter according to the latest Morningstar report. A worrying statistic as the deadline to bid for a seven-year contract to hold onto their default provider status creeps closer.

AMP Capital AMP Life Blackrock Ares
Comments (1)
Brian Gillatt
This will see the end of an appalling decade of incompetent management at senior level of AMP. They have driven am icon insurer into the ground. This degree of ineptness in some businesses would lead to prison for those responsible.
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4 years ago
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