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AMP Soars on Collimate Sale

The AMP Ltd share price is taking off as the company finally found a buyer for the last portion of their Collimate Capital business.


International digital infrastructure firm, DigitalBridge, has agreed to buy Collimate’s international infrastructure equity business. The transaction’s set to be worth up to $699 million. By the end of trading, AMP shares were up over 13% to $1.16.


The AMP share price is roaring higher as the company confirms the final sale of its multifaceted divestment of Collimate Capital – a business previously announced to be demerged. The international infrastructure equity business maintains $9 million of assets under management.


The demerger was one of the most ideal moves AMP has made for shareholders in the year. The last portion of the transaction will have DigitalBridge paying up to $699 million. DigitalBridge will also provide AMP an upfront cash payment of $462 million for the business.


DigitalBridge may also have to pay an estimated $57 million of retained future carry and performance fees and up to $180 million of fees contingent on future raisings.


This particular transaction was followed by the $430 million sale of Collimate’s domestic infrastructure equity and real estate business and the $578 million sale of its infrastructure debt platform which was completed in February.


The transactions suggest Collimate Capital has a value of $2.04 billion, including the value of retained assets.AMP plans to give most of the funds raised through the sales to shareholders through a capital return. It will also use some of the cash to pay down some of its debt.


The sale of Collimate’s international infrastructure debt and equity platforms and its real estate and domestic infrastructure equity business is expected to bring AMP a combined net capital increase of approximately $1.1 billion.


AMP CEO, Alexis George commented on the sale:


“Post completion of the two sales, AMP Limited will be a more focused entity, concentrated on driving our core banking and retail wealth businesses in Australia and New Zealand, with a core objective of accelerating our strategy and increasing our competitiveness.”