It turned out to be a pretty decent day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) on Monday. By market close, the ASX 200 had picked up a healthy 0.59%, putting the index at just over 7,150 points. But it was a different story for the AMP Ltd (ASX: AMP) share price.
AMP shares had a shocker today. In direct defiance of the broader market's good mood, the AMP share price lost a nasty 4.17%, leaving the financial services company at $1.27 a share.
So why were investors singling out AMP for some punishment today?
Well, it probably had something to do with the announcement the company put out this morning before market open.
Image source: Getty Images
AMP share price hits a snag over Collimate sale
This announcement is related to the deal AMP has inked with Dexus Property Group (ASX: DXS) for the sale of its Collimate Capital funds management business. The original deal was subject to a number of conditions being fulfilled by 27 January, one being the approval of regulators in China.
This is proving to be a sticking point, with AMP admitting that "there is uncertainty around achieving this date".
As such, "AMP and Dexus have agreed to extend the date for satisfaction or waiver of conditions precedent to 28 February 2023".
However, both parties have also agreed upon the following:
If the conditions precedent are not satisfied or waived by 26 January 2023, the base purchase price will be reduced by A$25 million to A$225 million, and the remaining potential funds under management (FUM) based earnout (currently A$26 million) will be forfeited.
So this is probably what weighed on the AMP share price today. It's certainly not the news shareholders were probably hoping to hear when they woke up this morning. We'll have to see what the rest of the week (and month) hold in store for AMP shares.
AMP had a cracking year in 2022, rising by 30.7%. But it remains a long way from its turn-of-the-century glory days when it was fetching upwards of $13 a share.
