AMP-Dexus sale reaches next stage
AMP has reached the next stage in the sale of its real estate and infrastructure business to Dexus, although the sale remains yet to be completed.
The deal was first confirmed in April 2022 for an upfront cash consideration of $250 million, and expected to be completed in the second half of 2022.
At the time, the firm said: “It will also create greater clarity for our people and clients while allowing them to benefit from the experience and successful investment performance track record of Dexus, as well as from increased scale and access to liquidity.”
However, the deal has since been plagued by delays.
The sale of the business to Dexus Funds Management was initially delayed in January 2023 due to issues around the transfer of AMP’s ownership interest in China Life AMP Asset Management (CLAMP).
If the conditions were not met, the maximum total consideration payable by Dexus would be reduced to $225 million and the potential earn-out amount of $26 million would be forfeited.
It was then subsequently delayed again in March 2023 as AMP continued working on securing the outstanding China regulatory approval.
In a statement on 30 October, AMP said: “Further to AMP Limited’s announcement on 20 March 2023, AMP confirmed that the condition precedent to finalise completion of the sale of the AMP Capital real estate and domestic infrastructure equity business to Dexus Funds Management Ltd (Dexus), being the transfer of AMP’s interest in China Life AMP Asset Management Company Limited (CLAMP) out of the sale perimeter, has been satisfied.”
The sale is now set to be completed by 30 November 2023.
Upon final completion, AMP said it will receive the remaining $50 million of the $225 million base purchase price from Dexus.
The sale follows earlier divestment of the remaining interest in AMP Life, the sale of AMP Capital’s global equities and fixed income business, the infrastructure debt platform and the international infrastructure equity business.
It completed the sale and transfer of its international infrastructure equity business in February 2023 to DigitalBridge for a total value of $582 million.