AMP board hires Blackpeak Capital, as suitor Ares’ bid deliberations extend into 2021

AMP has tapped boutique adviser Blackpeak Capital to assist in assessing takeover interest in the group and the $6bn-plus offer by US suitor Ares Management.

AMP led by chairman Debra Hazelton is weighing a takeover bid by US group Ares. Picture: The Australian.

AMP’s Debra Hazelton-led board has tapped boutique adviser Blackpeak Capital to assist in assessing the merits of takeover interest in the group and the $6bn-plus offer by US suitor Ares Management.

The Australian understands Blackpeak’s executive chairman Max Billingham is on deck to provide independent counsel specifically to the AMP board, while Goldman Sachs and Credit Suisse are advisers to the company. Sources said the Ares due diligence on AMP was progressing slowly, given a host of questions have been raised and are awaiting answering by the target.

The appointment of Blackpeak comes as Ares weighs up a binding offer for the 171-year-old wealth group that has been beset by a spate of issues, including cultural, governance and fund outflows in the past two years.

An AMP spokesman declined to comment.

Mr Billingham is a former Credit Suisse investment banker and has provided advice to companies including Rio Tinto, Woodside, Fortescue Metals, BlueScope and GrainCorp, according to Blackpeak’s website.

In the defence camp, Goldman Sachs and Credit Suisse are spearheading the AMP portfolio review and potential sale.

Further due diligence material was understood to have been prepared by AMP and its advisers late last month, and provided to Ares and other potential suitors for the group or the capital division which manages $189bn across real estate, infrastructure and equities.

The indicative offer by Ares, pitched at an implied value at $1.85 per share, saw the AMP board open the door to a broad auction process and a data room.

Given the indicative bid includes Ares’ stock, AMP also has to undertake reverse due diligence on its potential buyer as the board figures out what course of action is in the best interests of the beleaguered company’s shareholders.

Ares also has to work through what to do with a string of AMP minority stakes and joint venture agreements. Those include a 20 per cent stake in Resolution Life’s local entity – which acquired AMP’s life insurance business – given the parties continue to work through transition and service agreements on the deal.

AMP chief executive Francesco De Ferrari continues to also push ahead with his turnaround plan, and this week announced the appointment of former Sunsuper boss Scott Hartley to lead the AMP Australia division. That follows the abrupt departure of Alex Wade which was mired in scandal given he sent lewd pictures to a colleague.

Mr Wade’s exit exacerbated an already tense situation given the promotion of Boe Pahari to lead AMP Capital, despite him being financially penalised for an earlier sexual harassment incident. Investor fury led to Mr Pahari’s eventual demotion from the role and the departure of former chairman David Murray.