April 27 (Reuters) - Australian wealth manager AMP Ltd
will sell the real estate and domestic infrastructure
equity business of its asset management unit, AMP Capital, to
Dexus for up to A$550 million ($392.8 million), the
companies said on Wednesday.
The deal includes A$250 million in upfront cash payment and
an earn-out consideration of up to A$300 million subject to
factors including the successful transition of assets under
management (AUM), the firms said in separate statements.
AMP said, however, it was unlikely it would receive the full
earn-out given an expected loss of AUM from AMP Capital, now
called Collimate Capital, of about A$3.0 billion.
Dexus, an Australian real estate firm, will also buy AMP's
existing and committed sponsor stakes in AMP Capital for up to
The deals pivot the 172-year-old AMP away from its plan to
demerge AMP Capital, and instead will opt to sell parts of the
"The transaction will unlock value for AMP shareholders,"
the embattled wealth manager said, adding that it would use
proceeds of the sales to pay down debt and return capital to
AMP, which is trying to turn itself around after a series of
scandals that led to a drop in earnings, said it also remains in
talks on AMP Capital's international infrastructure equity
business after getting several acquisition enquiries.
($1 = 1.4004 Australian dollars)
(Reporting by Roushni Nair, Shashwat Awasthi and Tejaswi Marthi
in Bengaluru; Editing by Subhranshu Sahu and Sherry