The sale of Collimate Capital’s real estate and domestic infrastructure equity business from AMP to Dexus has been pushed back again as the firms await regulatory approval in China.
In statements to the ASX on Wednesday, AMP and Dexus confirmed that they had agreed to extend the date for satisfaction or waiver of conditions precedent for the deal to 20 March.
“AMP continues to work towards securing the outstanding regulatory approval,” AMP said.
At the time, AMP and Dexus agreed to extend the date for satisfaction or waiver of conditions precedent to 28 February, from an earlier deadline of 27 January.
In their latest updates, the companies noted that they are in the process of finalising binding documentation for an alternative transaction structure with a two-stage completion process.
“This would allow first completion of the transaction without satisfaction of the condition precedent relating to the transfer of AMP’s ownership interest in China Life AMP Asset Management (“CLAMP”) out of entities being acquired by Dexus under the transaction,” Dexus explained.
“Under the alternative transaction structure, the staff and effective day-to-day management of the majority of the platform would transfer to Dexus at first completion.”
First completion, the firms noted, is expected to occur on or before 20 March and will remain dependent on the ownership of CLAMP being transferred out of the relevant entities that Dexus has agreed to purchase.
“The alternative transaction approach will be pursued alongside completion requirements for the existing transaction. Dexus will keep the market informed of any material updates relating to the transaction,” the firm said.
AMP similarly pledged to keep the market updated on any material updates to the transaction.
As previously announced, the maximum total consideration payable by Dexus as part of the deal has been reduced to a base price of $225 million.
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.