{"id":114458,"date":"2021-02-26T01:19:57","date_gmt":"2021-02-26T01:19:57","guid":{"rendered":"https:\/\/precoinnews.com\/?p=114458"},"modified":"2021-02-26T01:19:57","modified_gmt":"2021-02-26T01:19:57","slug":"amp-shares-surge-on-ares-bid-to-buy-60-of-units-private-markets-business","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/amp-shares-surge-on-ares-bid-to-buy-60-of-units-private-markets-business\/","title":{"rendered":"AMP shares surge on Ares bid to buy 60% of unit's private markets business"},"content":{"rendered":"
(Reuters) – U.S.-based Ares Management plans to buy 60% of the private markets business of AMP Ltd\u2019s asset management arm for A$1.35 billion ($1.06 billion), the pair said on Friday, weeks after scrapping a bid for all of the Australian company.<\/p> AMP shares on Friday surged 6.5%, far outperforming its peers and a broader market deep in the red, to A$1.485 – their biggest rise since November last year.<\/p>\n Under the deal, the Australian wealth manager will retain 40% of AMP Capital\u2019s private markets business, worth A$900 million, which deals in infrastructure and real estate investments. The whole joint venture is valued at A$2.25 billion.<\/p>\n Earlier in February, AMP said Ares had withdrawn a A$6.36 billion takeover proposal for the whole company, instead continuing talks over AMP Capital – considered its most valuable unit.<\/p>\n The wealth manager has lost two-thirds in value and struggled to repair its reputation since a 2018 public inquiry into the financial sector found AMP misled regulators and engaged in misconduct.<\/p>\n With the proposed deal, AMP\u2019s portfolio review launched last September comes to an end, the company said, adding that it and Ares now had 30 days to exclusively work toward a binding agreement.<\/p>\n It also said it was \u201cactively\u201d exploring the sale or a partnership deal for its global equities and fixed income business, while keeping ownership of AMP Capital\u2019s public markets business.<\/p>\n Through the joint venture, AMP will be able to leverage the global presence of Ares, which had $197 billion in assets under management at the end of December.<\/p>\n \u201cWe\u2019ve been impressed by the growth of AMP Capital\u2019s private markets business over the past several years,\u201d Ares\u2019 CEO Michael Arougheti said in a joint release.<\/p>\n He added that Ares\u2019 time with AMP during its portfolio review \u201cfurther cemented our view on the intrinsic value of this business under our leadership.\u201d<\/p>\n ($1 = 1.2721 Australian dollars)<\/p>\n