More problems for the AMP with one of its most recent deals now looking problematic and perhaps linked to the reports that the CEO, Francesco De Ferrari is on the way out.
The company told the ASX early Monday that there is now no certainty a deal with US investment firm Ares will proceed as the exclusivity period between the two expired and speculation mounts over the leadership of the fading wealth giant.
AMP signed a non-binding agreement in February to carve out AMP Capital’s private markets business and sell 60% to Ares for $1.35 billion.
That agreement included a 30-day exclusivity period, which ended on Sunday, at which time a binding agreement could be signed and the portfolio review would be concluded.
But no deal and no sign of one yesterday.
Monday’s statement came four days after an eruption of speculation about the CEO’s time in his position.
After a couple of goes, AMP’s board said on Friday that it was negotiating the future leadership of the company, which would be determined once the portfolio review ends.
AMP on Monday morning released a statement to update the market on the status of the Ares deal, that made it clear that no binding agreement had been signed.
“AMP and Ares continue to work towards a potential transaction and Ares has expressed interest in acquiring 100 per cent of the private markets businesses,” it said.
“There is no certainty that a transaction will proceed, or the terms, size or structure on which it would proceed. Any transaction would remain subject to approval of AMP shareholders.”
No more updates though on the CEO’s position and time left at AMP.
The shares lost another 3.3% to close at $1.30.
