Australian financial services provider AMP is set to undertake a portfolio review of its assets and businesses, following a decline in its profits.
The company has roped in investment banks Credit Suisse and Goldman Sachs to serve as advisers to manage the review of its business units, following an increased interest and inquiries.
AMP Chair Debra Hazelton said: “The Board believes that AMP has high-quality businesses with significant strategic value. The Board and management firmly believe in our existing strategy, including a repivot to private markets in AMP Capital and are confident that this will deliver long-term value for shareholders.
“However, we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner.”
AMP’s portfolio review follows the sale of its life insurance business AMP Life
The company’s decision for portfolio assets and businesses review follows the sale of its life insurance business AMP Life.
The company claimed that it is making progress in growing its asset management franchise, including a repivot to private markets and public markets, and building a simpler business in Australia.
AMP said that it is periodically receiving unsolicited interest in its assets and businesses, and has recently experienced a surge in interest and enquiries.
The portfolio review is aimed at evaluating the relative merits as well as potential separation costs and dis-synergies, with a focus on maximising shareholder value.
The company stated: “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.”
During the review, AMP business units are expected to continue focusing on executing its transformational strategy and deliver services to clients.
