The AMP Ltd (ASX: AMP) share price will be one to watch on Tuesday morning.
This follows the release of an announcement by the financial services company.
Why is the AMP share price on watch?
The AMP share price will be in focus today after the company confirmed speculation that it has been having discussions with “multiple” parties over a potential divestment.
According to the release, AMP is in discussions with these parties, which include DEXUS Property Group (ASX: DXS), in relation to the potential sale of the assets and businesses of Collimate Capital.
Collimate Capital is the new name of the company’s private markets business, which AMP is currently in the process of demerging. It is a global asset manager and a leader in real assets.
AMP chose the name Collimate as it speaks to its “vision, foresight, and expertise in long-term value creation for clients.” The word is a scientific term meaning “to make rays of light or particles parallel” and is used as a metaphor for alignment, clarity, and precision.
No details have been provided in respect to what Dexus or another suitor would be willing to pay for the business. Management has only stated that it will seek to maximise value for shareholders, whether that be through a sale or a demerger.
It commented: “AMP will continue these discussions with a focus on maximising the value for shareholders by getting the best outcome for clients and employees. While these discussions continue, AMP remains in a position to pursue either a sale or demerger of these businesses.”
Dexus has also responded to the speculation, confirming that it is in talks with AMP.
It said: “Dexus confirms that it has been engaged in discussions with AMP regarding a possible transaction. Dexus notes that it regularly reviews strategic opportunities that have the potential to enhance Security holder value and at this stage, there is no certainty that a transaction will result.”
Both AMP and Dexus intend to update the market as necessary in line with their continuous disclosure obligations.