AMP is heading for its second UK purchase in less than a month after it confirmed discussions to buy UK based online financial information service Interactive Investor International (III).
According to the Financial Times in the UK, AMP has offered a large premium above the company’s capitalisation of $95 million. The newspaper said the price, however, was thought to be only a few million dollars above III’s cash holding of more than $136 million. This is a long way off the tech boom price of III which at its height, was valued at $1.87 billion.
This comes on the back of the recent purchase of independent financial advisory group Towry Law late last month for $207 million.
Less than a month before that purchase AMP sold its UK insurance assets to Churchill Insurance, a subsidiary of Credit Suisse, for $211 million, as part of a sell off of its general insurance business.
Confirming the news that it had made a move for III, AMP released a brief statement to the Australian Stock Exchange. It stated AMP had approached III to acquire it and discussions were continuing with additional information released when appropriate.
III said talks were ongoing, although the deal is thought to be awaiting only final board approval with an announcement expected later this week.
III offers primarily equity-based information, portfolio services, share prices and links to brokers and fund managers and also has a partnership with Towry Law.
The purchase of III will sit alongside a number of established operations in the UK market including the recent purchase of Towry Law which has a network of around 100 international financial planners.
AMP also recently launched its own web site, Ample, designed to help investors with retirement planning. The site is part of a plan of AMP to build up its UK operations. The funds management giant now owns Pearl and London Life, which are life assurance companies, as well as having a presence through AMP Hendersons Global Investors.
