AMP has signalled it is set to repurchase Mitsubishi UFJ Trust and Banking Corporation’s (MUTB) 15 per cent stake in AMP Capital, for $460 million.
The deal will end MUTB’s business and capital alliance with AMP – with the Japanese group to no longer have a representative on the AMP Capital board.
The total $460 million cash consideration for the shareholding represents $451 million from the agreed market value of the AMP Capital stake and $9 million for MUTB’s 15 per cent share of an AMP Capital dividend in respect of the six months ended 30 June.
AMP reported both companies have decided to focus on their respective strategies. AMP Capital has launched a new line of attack – but will continue to distribute investment products through MUTB’s network.
AMP chief executive Francesco De Ferrari said his group is not “giving up on Asian distribution”.
“MUTB has evolved as a key competitor over the last year in the market and we needed to resolve the strategic dilemma,” he said.
“We parted as good partners, each driving their own strategy.”
Mr De Ferrari added MUTB paid approximately $425 million for the stake in 2012.
The transaction will be funded primarily from AMP’s capital reserves and is expected to be complete in the third quarter, subject to regulatory approvals.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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