AMP’s (ASX:AMP) plan to spin-off could derail on talks with Dexus

AMP (ASX:AMP) has confirmed that it is in talks with “multiple parties” about the future of Collimate Capital, previously known as AMP Capital, in order to simplify operations and focus on local wealth management, super and banking solutions.

The embattled wealth manager has confirmed that negotiations with property group Dexus and other interested parties could result in a transaction to sell AMP’s real estate and infrastructure business.

The private markets business, rebranded to Collimate Capital, comprises over $44 billion in real estate and infrastructure investments offshore and posted $325 million of impairment charges in February.

Chief executive officer Alexis George said the impairments were recorded in line with “the future strategic direction” of the company and that “the charges are mainly non-cash and related to legacy issues, and our action will ensure that both businesses are in a stronger position to take advantage of opportunities in the future”.

Meanwhile, investors also woke up to an announcement from Dexus (ASX:DXS), who confirmed that it was talking to AMP about a possible transaction after media speculation, noting that there was no certainty that a deal would be inked.

If the latest move sees Collimate Capital change course from AMP’s initial plan to demerge and separately list on the ASX to selling parts or all of this arm, it could spark a new chapter after Perpetual (ASX:PPT) put a $2.4 billion bid for Pendal (ASX:PDL) this month.

Shares are trading 0.7 per cent higher at $1.06.