Dexus and AMP have agreed to extend the date for satisfaction or waiver of the conditions precedent for the acquisition of the Collimate business to 20 March 2023 due to ongoing delays in securing approvals to the transaction.
The one condition precedent for completion of the transaction which remains outstanding is the approval by the regulatory authority in China to a change in the ownership interest in the AMP entity associated with the China Life AMP Asset Management business which is currently associated with Collimate but is proposed to be revert to an alternative AMP Limited entity.
As an alternative to proceeding with the original transaction structure, Dexus and AMP are also in the process of finalising binding documentation for an alternative Transaction structure under a two-stage completion process. This would allow first completion of the Transaction without satisfaction of the condition precedent relating to the transfer of AMP’s ownership interest in China Life AMP Asset Management (“CLAMP”) out of entities being acquired by Dexus under the Transaction.
Under the alternative Transaction structure, the staff and effective day to day management of the majority of the platform would transfer to Dexus at first completion. First completion is expected to occur on or before 20 March 2023. Final completion will remain dependent on the ownership of CLAMP being transferred out of the relevant entities that Dexus has agreed to purchase.
The maximum total consideration payable by Dexus has been reduced to a base purchase price of $225 million, in accordance with the update provided to ASX on 9 January 2023.
The alternative transaction approach will be pursued alongside completion requirements for the existing Transaction.