The AMP Ltd (ASX: AMP) share price could be on the move on Thursday.
This follows news that the embattled financial services company is offloading another asset.
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What did AMP announce?
This morning AMP announced that it has entered into a binding agreement with Macquarie Group Ltd (ASX: MQG) to sell its AMP Capital's Global Equities and Fixed Income (GEFI) business.
According to the release, Macquarie Asset Management will acquire the business for a consideration of up to $185 million.
Management notes that this sale delivers on AMP Capital's strategy to focus on high-growth opportunities in private markets across real estate, infrastructure and associated adjacencies. It also believes it is an important step in preparing the AMP Capital business for its planned demerger in the first half of 2022.
Furthermore, it highlights that the transaction delivers on the previously announced strategy for the AMP Capital public markets business to increase the scale of GEFI through partnerships or sale. As part of the Macquarie Group, it believes GEFI will be positioned to further improve its high-quality client service offering and to expand its client base and product set over time.
AMP Capital advised that it is also in the process of transferring the Multi-Asset Group business to AMP Australia to create an end-to-end superannuation and investment platform business.
AMP's Acting Chief Executive Officer, James Georgeson, said: "In bringing together two well-known Australian investment businesses with strong track records, we're pleased to deliver such a positive outcome for our clients, our GEFI teams and AMP shareholders. Our review of the GEFI business last year showed it had strong investment capabilities and performance but needed greater scale and broader distribution reach to compete effectively."
"Macquarie is a high quality and respected manager, with a complementary culture and capabilities, well-placed to develop the business and deliver continued strong investment performance for its expanded client base. We are committed to working with Macquarie to integrate and transition our clients and teams, and to explore new partnership opportunities to enhance the products and services we both provide to our clients," he added.
The AMP share price is down 28% since the start of the year. Shareholders will no doubt be hoping for better in the second half of the year.
