AMP Won't Pay Interim Dividend with Life Sale Derailed
July 14 2019 - 6:44PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Financial services provider AMP Ltd.
(AMP.AU) warned Monday it doesn't plan to pay a first-half dividend
in anticipation the proposed sale of its Australian and New Zealand
wealth-protection and mature businesses won't go ahead.
The Australian company said a deal with Resolution Life Group
Holdings LP was highly unlikely to proceed on the terms agreed due
to the challenges of meeting conditions set by the Reserve Bank of
New Zealand for approval.
AMP said it was working with Resolution Life to determine if
there is a solution that would address policyholders' interests and
regulatory requirements, but that will require the negotiation of
new terms and isn't certain.
As part of a sweeping overhaul unveiled last October, AMP agree
to sell its AMP Life unit to Resolution Life for 3.3 billion
Australian dollars (US$2.32 billion), including A$1.9 billion in
cash.
New Zealand's central bank earlier this month notified AMP that
it didn't expect to approve the company's application for approval
of the deal.
On Monday, AMP said it currently expected a Level 3 capital
surplus above the minimum regulatory requirement for the first half
of its financial year, but that given the uncertainty around the
AMP Life sale it now didn't anticipate paying an interim
dividend.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
July 14, 2019 18:29 ET (22:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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