The AMP Ltd (ASX: AMP) share price is edging higher today following a company update on the Collimate Capital demerger.
At the time of writing, the financial services company's shares are trading at $1.045, up 1.95%.
What did AMP announce to the ASX?
In its announcement, AMP disclosed that it won't be undertaking a share consolidation in the annual general meeting (AGM) on 20 May as previously advised.
Last month, the company stated in its annual report that a resolution would be put forward regarding the demerger of its private markets business Collimate Capital. However, this date has been pushed back until the vote in June on the proposed demerger.
AMP noted that further information on the share consolidation and process for shareholder approval will be provided prior to the shareholder meetings.
The demerger process will be conducted through a legal process known as a scheme of arrangement. This will include a number of steps such as obtaining approval from shareholders as well as court approval.
When the demerger is complete, Collimate Capital will trade as a separate company listed on the ASX.
AMP said that shareholders will be sent details of the demerger, including voting and upcoming shareholder meetings in due course.
Furthermore, the company mentioned that it has also received enquiries from other parties expressing interest in the Collimate Capital business.
More on Collimate Capital
Following a review of AMP's business portfolio, management declared its intent to separate and demerge Collimate Capital in April 2021.
The reason behind the motive is that AMP is made up of two distinctly different businesses — a domestic retail wealth manager and a global private market (infrastructure and real estate) business with institutional clients.
Management believes that separating the businesses will accelerate their individual growth strategies, enhance customer focus, and deliver value to shareholders.
AMP share price snapshot
Over the past 12 months, AMP shares have fallen by 14% in value. Most of these losses occurred towards the backend of 2021.
Although, when looking year to date, the company's shares are up by around 3%.
Based on today's price, AMP commands a market capitalisation of roughly $3.4 billion.
