A quiet yawn from investors about news that AMP could end the spin off its private markets arm and sell off the business to “multiple parties” of probable buyers, led by local property manager and investors Dexus.
AMP shares ended up 0.9% at $1.07 on the first day of trading after the long Easter break, during which we saw a slew of reports that confidently asserted that Dexus has about to snap up AMP’s private markets business Collimate Capital.
AMP put out a statement early Tuesday confirming the talks (which have been rumoured since mid-February) and naming Dexus as one of the parties involved.
Collimate manages tens of billions of dollars in real estate and infrastructure assets and is a big deal for the probable buyer. That is the sort of asset group Dexus, led by CEO Darren Steinberg, has been looking for as he has gradually grown the business in recent years.
But some analysts wonder if AMP will sell off Collimate as a whole business, or look to break it up and sell off bits to various buyers among the “multiple parties” the company has been talking to. It could get more than the reported $300 million value that way.
AMP had been looking to spin off Collimate Capital in the December half year – it’s a big deal with a possible value of around $300 million for a sale now, and possibly a bit more later in the year if the looming Reserve Bank rate rise and higher inflation don’t hurt CBD property values.
AMP is also looking to sell off its international infrastructure business with giant US fund manager and investor, Apollo Global Management the likely buyer.
Dexus last year grabbed management control of a major AMP property fund confirmed on Tuesday that it was talking to AMP about a possible transaction, but said this was not certain.
“Dexus notes that it regularly reviews strategic opportunities that have the potential to enhance security holder value and at this stage, there is no certainty that a transaction will result,” Dexus said.
That’s coyness in the extreme.
