Speculation is mounting that AMP again has asset sales on the agenda, with a revived process for its New Zealand wealth management division believed to be in the wings.
DataRoom can reveal that AMP’s IPAC Securities business, which it inherited through its acquisition of Axa Asia Pacific, is already on the block.
Axa Asia Pacific reportedly purchased the Australian funds management advisory operation in 2002 for $205m.
It is understood that an information memorandum is currently in the market for the unit and price expectations are around $200m.
Likely buyers are private equity groups like Quadrant, which owns wealth and advice group Fitzpatricks, smaller listed dealer groups, and Ironbark, which purchased Deutsche Asset Management in Australia.
There is also talk in the market that further provisions of up to $1bn could be looming for AMP, which has suffered from poor performance and staff departures.
Incoming chief executive Alexis George is thought to be keen to get money through the door, and the New Zealand division has always been seen as non-core for AMP.
Most expect the business to sell for about $500m, but the buyer is not obvious.
Last year, Credit Suisse and Jarden were working on a sales process for the New Zealand wealth management business.
At that time, Partners Group, backed by US-based buyout fund Blackstone, was seen as a logical acquirer.
Other options for the division are a demerger or an initial public offering.
For 2020, the New Zealand unit generated $36m of net profit, down 18.2 per cent from the previous year.
AMP recently fended off Ares Management which lobbed a $6.4bn buyout proposal last year in the hope of selling the company’s bank and wealth management arm and retaining AMP Capital.
AMP is now considering a spin-off of its private markets business within AMP Capital.
Some of AMP Capital’s real estate funds have been in a state of flux, as their property investors have been moving to appoint new managers.
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