AMP, Australia's biggest life insurer and fund manager, completed a capital raising on Friday that is the first step in its restructuring, Reuters reported. Analysts and bankers say the plan could set AMP up as a takeover target.
AMP said on Thursday it would spin off its dragging British insurance and funds management businesses. The firm said it would sell $1 billion Aussie dollars worth, or the equivalent of US$628 million, of its shares to institutional investors. Additionally, it said it would sell US$314 million worth of shares to individual investors. The sale of the institutional shares brought in more than US$755 million on Friday.
The firm said the offering was completed at $3.46 U.S. dollars, in the middle of the range it set, but a discount of more than one-third of its closing price on Thursday.
The staff of Mutual Fund Market News ("MFMN") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MFMN, and have not prepared, sponsored, endorsed, or approved these summaries.