The wealth giant announced AMP Capital’s private markets business will be spun off and likely listed on the ASX under a new board,independent management and fresh branding. AMP will retain a 20 per cent stake in the business and Mr Pahari will resign.
AMP also said it would manage its private markets assets internally but would continue to seek a sale partner for its global equity and fixed income business.
Major shareholder Allan Gray and others have long pushed for such an outcome,and managing director Simon Mawhinney said he was “very,very supportive” of the news.
“This is the first time that AMP Capital can be really structured as a sustainable asset manager with an operating model that is essentially purpose-built,” Mr Mawhinney said. “And I think this is better for everyone,it’s better for clients,it’s better for employees,I think it’s better for shareholders in the long term.“
However,Mr Mawhinney said there was “absolutely no need” for AMP to retain the 20 per cent stake in the new entity and called on the group to fully divest.
AMP’s shares jumped by more than 8 per cent in early trade to $1.21 per share but fell over the course of the day to close less than 1 per cent higher at $1.14 per share.
Tribeca Investment Partners portfolio manager Jun Bei Liu said the share price movement indicated the market was not “enthusiastic” about the announcement,which she said represented a clear “plan B”.