AMP, an Australian financial services company, has received an indicative, non-binding, conditional takeover proposal of AUD6.36bn ($4.47bn) from Ares Management.
According to the Australian firm, Ares Management has offered to acquire 100% of its shares at AUD1.85 ($1.3) per share through a scheme of arrangement.
The company stated: “AMP emphasises the preliminary nature of the proposal and discussions between itself and Ares, and that there is no guarantee that a transaction will eventuate and no certainty with regards to price.”
Last week, the Australian firm said that it is continuing to advance its portfolio review announced in early September 2020, which was taken up amid falling profits, reported Reuters.
The company claimed to have received considerable interest in its assets and businesses and is evaluating various options. Among these are continuing the execution of its three-year transformation strategy, with a focus on maximising shareholder value.
Ares Management as a global alternative investment manager explores various strategic opportunities and these include large and complex businesses and their units which could supplement or offer adjacencies to its core private equity, credit, and real estate groups.
The US firm said that any potential deal with AMP will be subject to a range of conditions and structural considerations. Included in these are extensive due diligence, evaluation of the sale of certain assets or non-core businesses, and could involve third party co-bidders.
Financial services and products offered by AMP
Established in 1849, AMP is essentially a wealth management company, which is also into retail banking and international investment management businesses.
The company offers financial advice and superannuation, banking and investment products, and retirement income to retail clients. It also offers corporate superannuation products and services for workplace super and self-managed superannuation funds (SMSFs).
In May 2020, AMP scrapped plans to divest its New Zealand wealth management business citing the disruption in economic and financial markets caused by the Covid-19 crisis.
