The AMP Ltd (ASX: AMP) share price was in the green today amid news of a potential buyer for its capital arm.
The wealth management company's shares finished the day at $1.02, a 1.49% gain.
Let's take a look at what is happening at AMP.
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Potential buyer for demerged brand
Singapore-based real estate company CapitaLand is looking at buying AMP's Capital Private Markets business, The Australian reported.
CapitaLand is one of the biggest diversified real estate groups in Asia. The company's influence spans more than 250 cities in over 30 countries. While its largest markets are in Singapore and China, it is also looking to expand to Australia, Europe, and the United States.
EIG is also reportedly looking into AMP's capital spin-off with the help of JP Morgan. If EIG took over the management rights of the demerged business's infrastructure funds, an Australian-listed real estate trust could look after the property funds.
As my Foolish colleague Bernd reported this week, AMP is planning to demerge AMP Capital Private Markets into a standalone business. In the company's FY21 full-year results reported last week, AMP indicated the demerger is on track for completion within the first half of this year.
The new business will be known as Collimate Capital. The leadership team for this spin-off has already been established and it is due to list on the ASX in the second half of this year.
AMP reported an underlying net profit after tax (NPAT) of $356 million in FY21, a 53% boost on FY20. However, it also reported a statutory NPAT loss of $252 million.
AMP share price snapshot
The AMP share price has climbed about 1% year to date but has fallen more than 24% in the past 12 months.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the last year.
AMP has a massive market capitalisation of around $67 billion based on today's share price.
