US private equity player Ares has released a preliminary valuation of AMP while noting that any transaction could involve third-party co-bidders.
Ares has valued AMP at $1.85 a share, or approximately $6 billion, as it forges ahead with a proposal to buy 100 per cent of the beleaguered wealth/asset management giant. At the time of writing, AMP shares were trading at $1.65.
“Any potential transaction would be subject to a variety of conditions and structural considerations, including extensive due diligence, evaluation of divestiture of certain assets or non-core businesses, and may involve third-party co-bidders,” Ares said in filings with the SEC.
“The diligence and discussions are very preliminary and there is no certainty that any transaction will occur on the proposed terms, within any particular timeframe, or at all.”
While a number of potential buyers are apparently circling AMP, Ares’ offer is the first that has been significant enough to warrant informing the market and shareholders. The focus remains on crown jewel AMP Capital, with opinions on the worth of the other business units – including the wealth arm and AMP Bank – remaining mixed.
AMP isn’t rushing into the deal, using its announcement to stress that nothing was final.
“AMP emphasises the preliminary nature of the proposal and the discussions between itself and Ares, and that there is no guarantee that a transaction will eventuate and no certainty with regards to price,” AMP said.