Dexus seeks alternative terms in AMP deal
AMP and Dexus Funds Management have engaged in discussions regarding an alternative transaction structure for Dexus’ acquisition of Collimate Capital’s real estate and domestic infrastructure business.
It was announced in April 2022 that AMP Limited had entered into an agreement for the sale of the business for an upfront cash consideration of $250 million.
Under the current terms of the deal, there was uncertainty as to whether all conditions could be met by 26 January, 2023. If they 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.
The delay related to the transfer of AMP’s ownership interest in China Life AMP Asset Management (CLAMP).
In a statement, Dexus said: “Dexus and AMP have also engaged in discussions regarding an alternative Transaction structure that would allow the staff and the business to move across to Dexus without CLAMP being transferred ahead of completion.
“If binding agreements are ultimately agreed by the parties, the transfer of most legal entities within AMP’s domestic real estate and infrastructure business and effective day to day management control of the majority of the platform would occur at first completion. First completion is contemplated to take place by March 2023.”
It said this alternative approach would be pursued alongside completion requirements for the existing transaction.
AMP added completion of the sale of Collimate Capital’s international infrastructure equity business to DigitalBridge, as announced last April, was expected to occur in February 2023.
AUTHOR
Laura Dew
Recommended for you
Australian and New Zealand sustainable funds saw outflows of more than $1.2 billion in the second quarter of 2024, according to Morningstar, with active strategies accounting for the majority.
Maple-Brown Abbott has finalised an agreement to be acquired by a rival fund manager to create a firm with $18.6 billion in assets under management, just two months after its former CEO exited to lead Magellan.
Following a strategic review, Platinum has announced it will merge its two listed investment companies with two of its quoted managed hedge funds.
With potential US interest rate cuts on the horizon, Income Asset Management believes now is an ideal time to be investing into the corporate bond market.
Add new comment