AMP - Stock Update
Event Spotlight
News has come out over the past few days that AMP has displayed interest in bidding for Westpac’s investment platform.
Westpac’s sale of its investment platform appears to be running into more issues than expected with potential complications surrounding the splitting of the superannuation segment of the investment platform. AMP can possibly benefit from the bidding as it would provide a potentially meaningful addition to the superannuation platform if AMP’s able to transfer the FUA onto its own infrastructure.
Risks remain around the certainty of the deal as its only early days therefore It is important to watch out for any new releases from AMP. This further adds to the news flow surrounding AMP as mentioned in our last note.
The Collimate Capital potential deal and the news coming out on AMP’s potential participation in a bid for Westpac’s investment platform both reinforce the idea that AMP is looking to reinvigorate itself and further supports the rationale for a BUY rating.
Company overview
AMP is a financial services company that operates a variety of products such as superannuation, investment products and banking.
AMP is moving forward toward becoming a more focused organisation as a result of the upcoming demerger which supports the investment thesis of a BUY rating. Risk still remains around the demerger process although notably it is a display of the group attempting to reinvigorate itself.
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