Ares intends to buy 60% of AMP's asset management arm's private markets business

FILE PHOTO: The logo of AMP Ltd, Australia’s biggest retail wealth manager, adorns their head office located in central Sydney, Australia, May 5, 2017. REUTERS/David Gray

(Reuters) – AMP Ltd said on Friday U.S.-based Ares Management intends to buy 60% of the private markets businesses of the Australian company’s asset management arm AMP Capital for A$1.35 billion ($1.06 billion).

Under the proposed deal, the troubled Australian wealth manager will retain 40% of the private markets business that deals in infrastructure and real estate investments. The whole joint venture is valued at A$2.25 billion.

AMP added that the total implied value for AMP Capital’s existing private markets business was as much as A$3.15 billion.

Earlier in February, AMP said Ares had withdrawn a A$6.36 billion takeover offer for the whole company.

With the proposed deal, AMP’s portfolio review comes to an end, the company said in a statement, adding that it and Ares now had 30 days to exclusively work toward a binding agreement.

Ares, which had $197 billion in assets under management at the end of December, did not immediately respond to a Reuters request for comment.

($1 = 1.2721 Australian dollars)

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