Takeover door is opened

So much has recently been written about AMP being a takeover target especially from the likes of Macquarie, kKR and big private equity firms. Management is fully aware that this will come and the capital management plan announced last Thursday was designed to prop the share price up through the following:

- return of some capital in the form of 10c per share dividends will certainly keep shareholders in the company especially with being fully franked, that is a good return on share price at this depressed level.

- The buyback program worth $200m is a clever move to counter manipulation of the share price down which is a classic move before takeover offer is launched.

- The buyback of the 15 percent interest of Mitsubishi will make takeover less complex and easy to pass.

-The sale of life insurance has enabled AMP to pay down debts, remove the risk of capital raise, strengthen the balance sheet, achieve the transformation plan, make the business robust, capitalize on the potential boom in infrastructure investment post COVID-19 and most importantly AMP removed the regulatory requirement for having surplus capital..

AMP Capital by itself is worth a lot more than what the share price indicates. AMP bank is a great business with more than 110,000 customers and AMP wealth although a struggle is a bonus that has not been fully factored in the share price.

looking at all of the above, I was right when I bought a parcel of 300,000 shares.

Any drop in the share price is a buy for me and I will continue buying, short term for the fully franked dividends , medium term for huge upside on takeover and long term for the huge upside once the transformation plan is a success.

It is a win win win situational in all scenarios, simply because IMHO, collapse of the company is a remote possibility.

My thoughts only. Please DYOR, I did