AMP warns on delay of Collimate Capital sales to Dexus, DigitalBridge

The sale of Collimate Capital businesses to Dexus and DigitalBridge are still awaiting regulatory approvals from China and the US.

AMP has flagged a potential delay with the sale of its Collimate Capital businesses, warning it is still awaiting regulatory approvals for the transactions.

In a statement issued on Tuesday, ASX-listed AMP said the sales of its domestic infrastructure equity and real estate business to Dexus and its international infrastructure equity business to DigitalBridge were “ongoing” but that they may not complete by the end of November as originally planned.

“Significant progress has been made on both transactions to meet the relevant conditions precedent outlined in the respective sale announcements of April 27, 2022 and April 28, 2022,” the company said.

“The regulatory approval processes associated with both sales are ongoing, with the result that the transactions may not complete by the end of November 2022.”

Among the approvals still required are those from regulators in China and the US.

“All parties are working constructively together towards completion, and we will update the market on the likely completion dates for both transactions as these approvals progress,” the company said.

AMP in April moved to hive off its Collimate businesses in a bid to unlock value for shareholders and put its focus back on banking and wealth management.

While Dexus agreed to buy the wealth manager’s real estate and domestic infrastructure equity business for $430m, DigitalBridge scooped up the international infrastructure equity business for a total value of up to $699m.

Earlier this year, chief executive Alexis George said the sales would deliver certainty for both clients and AMP staff.

“In DigitalBridge and Dexus we are confident we have found the right owners for both businesses,” Ms George said.

“They are focused on delivering strong returns for Collimate Capital’s clients and opportunities for our people. We expect both will add significant value through their scale, capability and depth of talent, which our teams will complement.

“Post completion of the two sales, AMP Limited will be a more focused entity, concentrated on driving our core banking and retail wealth businesses in Australia and New Zealand, with a core objective of accelerating our strategy and increasing our competitiveness.”

The sale to Dexus was initially flagged for September, but this was later pushed back to November, before Tuesday’s announcement detailed a further delay.

AMP shares closed steady at $1.27.