AMP is exploring options to spin off parts of the company.Credit:Louie Douvis
"AMP periodically receives unsolicited interest in its assets and businesses,and recently has experienced an increase in interest and enquiries."
"The board has therefore decided to undertake a portfolio review to assess all opportunities in a considered and holistic manner,evaluating the relative merits as well as potential separation costs and dis-synergies,with a focus on maximising shareholder value,"the company said in a statement.
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AMP shares jumped almost five per cent on the news,closing the session at $1.62.
Tribecca Partners senior portfolio manager Jun Bei Liu said it was clear AMP had"raised the white flag"and the company's value needed a boost."It's all too hard to keep the business as it is together,"she said."It's going to be a very challenging journey for the business but it's the right thing to do."
Newly appointed chair Debra Hazelton reiterated support for AMP's strategy,including the pivot to private markets in AMP Capital – the business that has been engulfed in scandal leading to the demotion of its chief executive Boe Pahariafter investor outrage over the company's handling of a sexual harassment complaint against him.
"However,we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner,"Ms Hazelton said.