AMP Limited’s board will be taking a good hard look at the company’s assets and businesses following an increase in interest and enquiries from potential suitors.
In a September 02 announcement, the board said it has decided to undertake a portfolio review to assess all opportunities in a considered and holistic manner. With a focus on maximising shareholder value, the goal is to evaluate the relative merits as well as potential separation costs and dis-synergies.
As it is, AMP is creating a leaner business as part of its transformation strategy. A little over two months ago, the group sold its life insurance business to Resolution Life. (You can read all about that here.)
The group, whose operations include banking and wealth management, has ceased to sell new AMP insurance products but retains a 20% equity stake in Resolution Life Australia. AMP also continues to advise clients on life insurance as well as provide coverage through its superannuation funds from a range of providers.
Lifting the lid on the planned assessment, the financial services firm said: “The review may conclude that AMP’s current mix of assets and businesses delivers the best value for shareholders and may not result in a recommendation to pursue any specific transaction.
“Throughout the review, AMP business units will remain focussed on implementing the company’s transformational strategy and delivering for clients.”
Tapped to serve as AMP’s advisers to manage the undertaking are Credit Suisse, Goldman Sachs, and King & Wood Mallesons.
