Ann: AMP announces intention to pursue Private Markets demerger, page-152

Repost as i missed the important bit

Dexus poised for merger success with AMP Capital Diversified Property Fund

The vote on whether the $5bn AMP Capital Diversified Property Fund will merge with a rival Dexus fund is expected to convincingly go the latter’s way on Tuesday.

Dataroom understands proxy votes already tallied point to the merger being approved, with a formal unitholder vote happening on Tuesday.

A result for the tie-up with Dexus — which plans to combine the AMP diversified fund with a $10bn fund it runs — would end the months long tussle for control.

The Dexus merger was recommended by the AMP fund’s independent board committee in mid-March, but both parties argued their case to unitholders again in recent weeks.

AMP’s loss of the management of the diversified fund likely sees it lose as much as $30m in gross fee income annually. Macquarie analysts last week estimated that, after taking into account fund redemptions and other transaction costs, Dexus could generate $13.8m of earnings before interest and tax from managing AMP’s diversified fund.

Tuesday’s vote will also be closely watched by investors in the larger $7bn AMP Capital Wholesale Office Fund, which is assessing its future management. That fund has set up an advisory committee and has investment bank Jarden running the process.

For the real estate funds merger with Dexus to proceed, 75 per cent of unitholders of AMP’s diversified fund must vote in favour. Holders of the Dexus wholesale fund must also give the merger the green light, although they have a lower approval threshold of 50 per cent.

The AMP diversified fund’s holdings include stakes in the Quay Quarter in Sydney’s central business district, the Gold Coast’s Pacific Fair retail and conference centre and the Macquarie Centre at North Ryde in Sydney.
The ructions in AMP’s real estate division continue even after the ASX-listed parent on Friday unveiled a demerger plan for its private markets division, which houses property and infrastructure investments.