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AMP hits record low
Shares in financial wealth giant AMP have closed at a new record low, following the potential sale of AMP Capital to US-based Ares Management falling through.
AMP hits record low
Shares in financial wealth giant AMP have closed at a new record low, following the potential sale of AMP Capital to US-based Ares Management falling through.
The failed merger as well as negotiations with outgoing chief executive Francesco De Ferarri saw shares slump on Friday’s trading to a new record low $1.19.
Shares in the Aussie financial services group have slumped by 20.5 per cent since the start of the year.
AMP and Ares entered into the 30-day exclusivity period to explore a 60 per cent sale of AMP Capital’s private markets business. The exclusivity period has now ended, with no conclusive agreement in sight.
“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,” AMP said at the time.
Following the failed contract talks, AMP’s share price closed at a record low $1.19 at close of business Friday.
The AMP share price has continued to slide to its current level amid the changes. It comes after Mr De Ferrari was installed to right the ship after a scandal-plagued period highlighted by the 2018 financial services royal commission.
AMP has since been working on a $1.35 billion sale of 60 per cent of its AMP Capital unlisted business.
Under the agreement, AMP would retain 40 per cent stake in the private market business, under a joint venture with Ares.
The share price for the wealth giant remains under pressure, with it falling well below Ares’ initial takeover price of $1.85 per share.
On the opening bell this morning, shares in AMP slightly recovered, up 1.4 per cent to $1.21 a share.
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