AMP Takeover Update
AMP Takeover Update
Back in November 2020, AMP a takeover offer from the American company ARES to buy the whole AMP business.
In November 2020, I created a video and a post with a purpose to warn everyone who owns shares in AMP, who has investments, or superannuation or a pension fund or even insurance with AMP, to stay alert, as if the AMP sale gets through, you might not know who would be controlling your money.
After few months of discussion and negotiation, a very surprising occurrence happened. ARES decided to dump AMP and not to proceed with the offer any longer.
Before you start jumping with joy, thinking that’s fantastic, AMP stays in Australia, I don’t have to worry about anything – well…… think again.
Honestly, we should ask a question: What is the reason that the company such as ARES, that buys other businesses for a cheap price, would reverse out of the offer and not go ahead with buying AMP.
Well, as it turned out, AMP was on a huge profit loss of 33% to the year before and ARES decided that the offer of $1.85 per AMP share obviously was too high.
Once the news was out, AMP share price tumbled down to $1.30.
When you look into the history of AMP, in 2007 AMP shares were over $10.00, so there is an inherent problem with this company, being on losses almost ever since. Last year AMP scaped the dividend, we do not know what is going to happen this year.
The only attractive part of AMP business is AMP Capital – which is a very well-known and respected fund manager, however AMP Banking & AMP Wealth Management, as well as NZ Wealth Management, are on huge losses.
Many financial planners left the company, many investors and policyholders left as well, and for a good reason.
So, if you have investments, superannuation, pension, insurance with AMP – seek good professional advice, there are lots of choices to keep your savings where you don’t have to worry if your money is there tomorrow.
If you are unsure what to do, just reach out, email me, so we can chat, and I can assist you.
by: Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement
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