AMP shares drop then pop amid ex-dividend and delay of $225 million sale

The sale of Collimate Capital's domestic leg looks to be split in two amid regulatory delays.

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Key points

  • The AMP share price is lifting 0.5% right now to trade at $1.04
  • It comes as the stock trades ex-dividend for the first time since 2019
  • Meanwhile, the market has heard potentially disappointing news of the company's Collimate Capital sale

AMP Ltd (ASX: AMP) fans likely have their sights on the embattled wealth management share on Wednesday.

Not only is the company trading ex-dividend, but it announced yet another delay to its $225 million domestic Collimate Capital sale.

After starting the day off in the red, AMP shares have turned it around. They're currently trading 0.48% higher at $1.04.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.06% right now.

Let's take a closer look at all that might be going wrong for AMP shares today.

$225 million sale delayed once more

The AMP share price has recovered this afternoon.

Meanwhile, new investors have officially missed out on the company's long-awaited 2.5 cents per share dividend, to be paid out early next month.

The market may have also been initially disappointed by the latest news of the sale of Collimate Capital's domestic real estate and infrastructure equity business.

Dexus Property Group (ASX: DXS) agreed to buy the business in April 2022.

However, the sale is conditional on Chinese regulators approving the transfer of AMP's interest in China Life AMP Asset Management. Gaining such approval has proven challenging.

In fact, AMP and Dexus are in the process of splitting the transaction into two stages.

The first stage is expected to complete without the approvals on or before 20 March. The second is dependent on the ownership of China Life AMP being transferred out of the entities being purchased.

Not to mention, the sale price has been dropped on the back of the delays. Dexus will now pay just $225 million – $25 million less than it would have if conditions were met by Sunday. AMP has also forfeited the remaining $26 million of potential funds under management-based earn-outs.

The sale of Collimate Capital's international infrastructure equity business was completed early last month for a total realised value of $582 million. The ASX 200 company is eligible for another $180 million cash earn-out, subject to conditions being met.

AMP share price snapshot

The AMP share price has suffered in 2023 despite today's uptick. The stock has fallen 20% since the start of the year. Though, it's gained 7% since this time last year.

For comparison, the ASX 200 is up 4% year to date and 2% over the last 12 months.

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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