AMP share price on watch amid Collimate Capital sale talks with Dexus and ‘multiple’ parties

AMP is in talks over a potential asset sale…

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Key points

  • AMP has confirmed that it is in talks over the potential sale of the Collimate Capital business
  • Collimate Capital is the new name for the private markets business
  • AMP is currently demerging the business but could sell it if it creates more value

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.

Potential sale

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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