Ares reportedly told AMP on Wednesday night that it does not intend to proceed with its previous proposal to buy out the wealth group for $1.85 per share.
The wealth giant intends to continue discussions with Ares in relation to AMP Capital as part of its ongoing portfolio review, which has already concluded assessing the wealth and banking segment (AMP Australia) and New Zealand wealth business.
The review has ruled that the group’s ongoing transformation of the divisions, heading towards a simpler business, is likely to be the best outcome for shareholders, as AMP has begun to explore partnership options for AMP Capital.
Meanwhile, the group reported an underlying net profit of $295 million for the 2020 year, a 32.8 per cent fall on the year before. Statutory net profit after tax (NPAT) came to $177 million, reversing the group’s previous $2.5 billion loss in FY19.
The board had also resolved to scrap the final dividend for the year, following $344 million being distributed through a special dividend of 10 cents in the first half of the 2020.
But AMP has pledged to restart the group’s payment of dividends, share buyback and other capital initiatives in 2021 – subject to the portfolio review, market conditions and business performance.
The Australian wealth management business had the hardest fall, with its underlying NPAT plummeting by 43.6 per cent to $110 million. AMP Capital’s profit was down by 31.9 per cent to $139 million, while the bank slipped by 15.6 per cent to $119 million.
The New Zealand wealth business also copped an 18.2 per cent decrease in profit, to $36 million.
Assets under management in the Australian wealth business was down by 8 per cent to $124.1 billion, while AMP Capital’s managed assets fell by 7 per cent to $189.8 billion.
The government’s early super release program had allowed AMP members to withdraw $1.8 billion.
Further, the group’s client remediation program is reported to be 80 per cent complete and on schedule to complete mid-year.
The sooner this evil company is gone the better.
Why wasnt my comment from yesterday published?
Neither was mine!
It’s worth $2.50 cents
Per share? Tell’em their dreaming….
Whole company
No….a full and final payment!
No, not per share, it’s $2.50 for the whole Company.
Please invoice the invoice?
Surprise, surprise (NOT)…..they lifted open he bonnet; took a closer look and closed the bonnet and said: “Thanks…but no thanks! Good luck selling it!” AMP should just realise they are not fit for business in a Post Hayne / RC world. They weren’t fit before and they are not fit now! AMP just do the right thing and close the business without trying to conn anyone else.
Does that mean the wealth management has a value similar to what CBA sold to Countplus which was some -$400,000, i.e. negative $400k per adviser?
No surprise really,who would want to buy such a toxic outfit?
Untouchable…..
Ares potentially wish to reduce their offer. What was AMP’s share price a week after the float??
Absolutely Miserable & Pathetic (AMP)
Another Measly Profit