AMP finalises international infrastructure equity business sale

AMP has confirmed that the sale and transfer of the Collimate Capital international infrastructure equity business to DigitalBridge has been completed.

In a statement on Friday, the firm said that the total value realised on the sale was $582 million, including a $521 million cash payment received from DigitalBridge, of which $77 million was said to be associated with a balance sheet adjustment.

It also included $57 million of value from retained estimated future carry and performance fees and $4 million of gains on foreign exchange hedges of the estimated consideration, between signing of the deal and completion.

AMP noted that it remains eligible for a further cash earn-out of up to $180 million contingent on future fund raisings for the Global Infrastructure Fund III and Global Infrastructure Fund IV.

“The completion of the sale of the international infrastructure equity business marks an important milestone in AMP’s transformation, as we become a simpler, retail-focused bank and wealth manager, operating in Australia and New Zealand,” said AMP chief executive officer Alexis George.

“As well as simplifying and focusing our business, completion of the transaction will help unlock significant value for investors, will support our previously announced $1.1 billion capital return program, and will strengthen our balance sheet.”

AMP announced the deal with DigitalBridge in April last year, a day after confirming the sale of Collimate Capital’s real estate and domestic infrastructure equity business to Dexus Funds Management.

In an update on the sale to Dexus last month, AMP noted that it had yet to secure approval from a Chinese regulator for the transfer of its interest in China Life AMP Asset Management. The firm did not comment on the current status of the Dexus deal in its latest statement.

AMP is set to announce its full year results on 16 February, where it will provide an update on its capital position and capital management program.