Australia’s AMP has sold its investment management subsidiary Collimate Capital, formerly AMP Capital, to two companies, reports our sister publication, International Adviser.
The deals will see Collimate’s international infrastructure equity business acquired by global investment firm DigitalBridge Investment Holdco – a subsidiary of DigitalBridge Group – for A$462m ($346m).
While Collimate’s real estate and domestic infrastructure equity business has been sold to Australian real estate and asset management group Dexus Fund Management for an upfront cash consideration of A$250m.
Dexus will also buy AMP’s existing sponsor stakes in the platform, worth A$180m, meaning it will pay a total consideration of around A$430m.
In February 2022, AMP rebranded AMP Capital to Collimate Capital as it planned to demerge the unit from the wider business. But rumours of a potential M&A deal started in early April 2022, when AMP and Dexus confirmed they were in talks over a potential acquisition, effectively putting paid to those plans.
Grow wealth and banking businesses
AMP chair Debra Hazelton said: “The transactions we have announced in the past two days represent a strong outcome for AMP shareholders and Collimate Capital stakeholders. It was clear in our 2021 portfolio review that we had two businesses that would be better separated and simplified and in doing so realise greater value and that is what we have achieved.
“AMP and Collimate Capital have built outstanding private markets businesses in infrastructure and real estate over many years. In selling these businesses to such respected specialists in DigitalBridge and Dexus, we are confident that the businesses’ clients and the talented teams transferring with them will benefit.
“Post separation and these sales, AMP Limited has a focused strategy to grow AMP Bank and the wealth management businesses under CEO Alexis George’s leadership with the benefit of a stronger capital and liquidity position.
“As we work through the capital implications of the transactions the Board will be focused on returning the majority of cash proceeds to AMP shareholders.”
AMP chief executive Alexis George added: “This is an important moment for AMP shareholders, clients and our people, as we announce the sale of our remaining Collimate Capital business. These sales realise significant value for shareholders and deliver certainty for clients and for our people.
“In DigitalBridge and Dexus we are confident we have found the right owners for both businesses. They are focused on delivering strong returns for Collimate Capital’s clients and opportunities for our people. We expect both will add significant value through their scale, capability and depth of talent, which our teams will complement.
“Post completion of the two sales, AMP Limited will be a more focused entity, concentrated on driving our core banking and retail wealth businesses in Australia and New Zealand, with a core objective of accelerating our strategy and increasing our competitiveness.”
