Plus   Neg

AMP Says Life Unit Sale 'unlikely' To Proceed; Scraps Interim Dividend

Australian wealth manager AMP Ltd. (AMLTF.PK, AMP.AX) said that the sale of AMP Life, the Australian and New Zealand wealth protection and mature businesses, to Resolution Life is unlikely to proceed on current terms due to the challenges in meeting the condition precedent for Reserve Bank of New Zealand or RBNZ approval. AMP scrapped its interim dividend.

In late 2018, AMP agreed to sell AMP Life to Resolution Life for about A$3.3 billion or $2.3 billion.

On Saturday, Resolution Life notified AMP that RBNZ would not consider Resolution Life's change of control application unless it agreed to have separate, ringfenced assets held in New Zealand for the benefit of New Zealand policyholders, and Resolution Life does not expect RBNZ to approve an application that would satisfy the condition precedent.

AMP today said," The failure to meet this condition precedent is exceptionally disappointing as the sale of AMP Life is a foundational element of AMP's strategy."

AMP noted that it is now working with Resolution Life to determine whether there is a solution that addresses policyholder interests, regulatory requirements and provides certainty of execution. This will require negotiation of new terms and is not certain.

AMP said it expects to continue its prudent approach to capital management and anticipates that an interim dividend will not be paid for first-half of 2019, due to the uncertainty around the AMP Life transaction.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
While reporting financial results for the third quarter on Thursday, branded food company Hormel Foods Corp. (HRL) reaffirms its earnings guidance for the full-year 2019, while trimming annual net sales outlook as its navigates near-term uncertainty related to African swine fever. For fiscal 2019,... The U.S. Food and Drug Administration has issued a warning letter to Ningbo Huize Commodity Co., an over-the-counter drug manufacturer, for significant current good manufacturing practice violations, including data integrity issues. The warning letter issued to Ningbo Huize details a failure to have... Crate and Barrel have recalled 1,500 push walkers due to risk of choking and laceration. Crate and Barrel have recalled Activity Push Walkers as those walkers can be damaged over time exposing sharp points and small parts, posing choking and laceration hazards to small children. The wooden recalled...
Follow RTT