AMP is considering selling all, or some, of its assets, the ASX-listed business confirmed this morning.
In a market release, AMP says the company has seen a surge in “unsolicited interest in its assets and businesses”.
“The Board has therefore decided to undertake a portfolio review to assess all opportunities in a considered and holistic manner, evaluating the relative merits as well as potential separation costs and dis-synergies, with a focus on maximising shareholder value,” the release says.
“The review may conclude that AMP’s current mix of assets and businesses delivers the best value for shareholders and may not result in a recommendation to pursue any specific transaction.”
However, recently appointed AMP chair, Debra Hazelton, said the board “and management firmly believe in our existing strategy, including a repivot to private markets in AMP Capital and are confident that this will deliver long-term value for shareholders”.
“However, we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner.”
It is understood a number of potential buyers, including Macquarie, have been kicking the tyres of the troubled AMP business, which has been in recovery mode over the last few years.
After offloading its seminal life insurance business this June, the company was hit by a scandal in the firm’s funds management arm that saw the demotion of newly appointed AMP Capital chief, Boe Pahari, and the resignation of group chair, David Murray. Francesco De Ferrari, AMP chief, has stepped in as interim leader of the AMP Capital business.
AMP has appointed Credit Suisse, Goldman Sachs and King & Wood Mallesons to manage the review.
The AMP share price sunk to an historic low of about A$1.10 in March, rising to A$1.54 as at today.