AMP sells international infrastructure business
AMP has completed the sale and transfer of its international infrastructure equity business to DigitalBridge.
Total value of $582 million, comprised:
- $521 million cash payment received from DigitalBridge, of which $77 million is associated with a balance sheet adjustment;
- $57 million of value from retained estimated future carry and performance fees; and
- $4 million of gains on foreign exchange hedges of the estimated consideration, between signing and completion.
AMP also remained eligible for a further cash earn-out of up to $180 million which is contingent on future fund raisings for Global Infrastructure Fund III and Global Infrastructure Fund IV.
The sale would support the delivery of AMP’s strategic objective to simplify its portfolio and focus on its core businesses of retail banking and wealth management.
AMP chief executive, Alexis George, said: “The completion of the sale of the international infrastructure equity business marks an important milestone in AMP’s transformation, as we become a simpler, retail focused bank and wealth manager, operating in Australia and New Zealand.
“As well as simplifying and focusing our business, completion of the transaction will help unlock significant value for investors, will support our previously announced $1.1 billion capital return program, and will strengthen our balance sheet.”
AUTHOR
Laura Dew
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