AMP confirms capital raising reports
(Australia) AMP has confirmed media reports that it is considering a capital raising of A$1.15 billion to shore up its financial situation before splitting the Australian and UK operations.
AMP said that if the proposed demerger went ahead it would be necessary to refinance the reset preferred securities (RPS) to "achieve regulatory, ratings and tax efficiency".
It also said that refinancing would most likely be for the full amount of the RPS, "although proceeds from asset sales, if realised, will be taken into account in the final capital structure".
"When AMP has determined the best way in which to refinance the RPS, full disclosure will be made," AMP chief executive Andrew Mohl said in a statement.
"Refinancing is also dependent on a number of other factors including agreement with regulators on the capital structures of the demerged entities and Board approvals," he said.
It also said that refinancing would most likely be for the full amount of the RPS, "although proceeds from asset sales, if realised, will be taken into account in the final capital structure".
"When AMP has determined the best way in which to refinance the RPS, full disclosure will be made," AMP chief executive Andrew Mohl said in a statement.
"Refinancing is also dependent on a number of other factors including agreement with regulators on the capital structures of the demerged entities and Board approvals," he said.
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