The AMP Ltd (ASX: AMP) share price just can’t shake the pressure right now. Shares in the Aussie wealth manager have slumped more than 3% today despite no new market updates.
Why is the AMP share price getting smashed?
AMP and its shareholders are having a tough time of it right now. The company has been in the news for quite some time with everything from scandals to leadership changes to restructuring.
That includes last week’s announcement that it would look to spin-off its AMP Capital arm via Private Markets demerger. The AMP share price charged higher on the news that AMP is looking at listing its Private Markets business while retaining its retail-focused wealth management group within AMP Limited.
However, an article in the Australian Financial Review (AFR) may provide some insight into today’s AMP share price moves.
Investors in AMP’s $5 billion AMP Capital Diversified Property Fund (ADPF) have voted to merge with a wholesale fund run by DEXUS Property Group (ASX: DXS). Some 93% of voters backed the merger which puts the spotlight back on AMP Capital’s plans.
The AMP share price has fallen more than 3% this morning with all eyes intensely focused on any potential changes to its existing funds. Yesterday’s vote paves the way for ADPF to join with the $10 billion Dexus Wholesale Fund, whose voters also backed a merger.
AMP Capital is hoping to “unlock further value in the Private Markets business” with the demerger. AMP has started an international search for a new CEO ahead of a planned 2022 process completion.
The AMP share price has been under pressure for quite some time now. Shares in the diversified financials group are down 35.7% since November 2020 and have slumped to a new 52-week low.
The AMP share price has fallen to a new 52-week low of $1.08 today in a disappointing day of trade. It comes as investors in one of its wholesale real estate funds voted to merge with a Dexus-run wholesale fund.