The struggling Australian wealth manager AMP share price went up after the company announced on Monday that it has received a conditional offer of $4.47 billion from the U.S. based Ares Management Corp. The share price increased up to 9.8%, reaching as A$1.68 per share on Monday after the news was made public. The share price is still low than the offer price by Ares which is A$1.85 per share, indicating that investors still not hopeful for the deal.
It was reported earlier that other potential buyers are also interested in buying separate parts of the company. The AES deals in banking, fund management and financial planning units etc.
The chief investment officer of Allan Gray said that he is surprised on market reaction and we will consider all offers for AMP for whole or in parts.
The AES said that the talks are at initial stages and there are no concerns about the deal based on the given offer. The Offer by Ares offer gives a 21% premium to AMP’s closing price of A$1.53 per share on Friday.
The reputed wealth management company, AES, has lost more than two-thirds of its value since 2018 when a public inquiry revealed systemic wrongdoing at the company such as charging fees for advice that was never given, taking insurance premiums from the accounts of dead clients, and misleading the regulators. Due to the company`s conduct and bad reputation in recent years, the company suffered a loss of multi-billion investment.
IOOF Holdings Ltd took AMP top Position, as Australia’s largest wealth manager, after buying the National Australia Bank Ltd.