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AMP and Dexus provide update on deal completion

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The two firms have issued an update relating to the sale of AMP Capital’s real estate and domestic infrastructure equity business announced last year.

The sale of AMP Capital’s real estate and domestic infrastructure equity business to Dexus Funds Management is now expected to be finalised on 30 November.

AMP and Dexus confirmed that the outstanding condition precedent for final completion, relating to the transfer of AMP’s interest in China Life AMP Asset Management Company Limited (CLAMP), has now been satisfied in ASX announcements on Monday afternoon.

Upon final completion of the transaction, AMP noted that it will receive the remaining $50 million of the $225 million base purchase price from Dexus.

AMP first announced the sale of its domestic infrastructure equity and real estate business to Dexus in April last year, shortly before confirming an agreement to sell its international infrastructure business to a subsidiary of DigitalBridge Group.

But in January this year, AMP revealed that it had yet to secure approval from an applicable Chinese regulator for the transfer of its interest in CLAMP.

AMP and Dexus had previously agreed to provide each party with the right to terminate from 27 January if all necessary conditions were not satisfied. However, the firms extended the date for satisfaction or waiver of conditions precedent to 28 February.

This date was again pushed back in March, when AMP and Dexus also noted that they were in the process of finalising binding documentation for an alternative transaction structure with a two-stage completion process while awaiting regulatory approval in China.

Later that month, AMP and Dexus announced that first stage completion of the deal would occur on 24 March, with both parties entering into an unconditional agreement on a revised transaction structure.

AMP said this revised structure enabled the transfer to Dexus of most legal entities, holding the majority of AMP Capital’s domestic assets and management rights.

At first completion, AMP received approximately $337 million from Dexus, including $175 million of the $225 million base purchase price for the real estate and domestic infrastructure equity business, $105 million for sponsor investments, and $57 million for the cash, net of the remaining liabilities, held on the business’ balance sheet.

The remaining $50 million of the base purchase price was contingent on the transfer of its interest in CLAMP out of the sale perimeter by 30 September 2024.

“Completion of the sale of the remaining AMP Capital business will mark the delivery of a key pillar of our strategy to simplify AMP,” AMP chief executive officer Alexis George said at the time.

“The sale allows AMP to have a clear focus on our go forward businesses of retail banking and wealth management in Australia and New Zealand. We will continue to build on the hard work of the past 12 months to position AMP to win in those markets, deliver for customers, and drive value for shareholders.”