AMP has completed the transaction to sell its three fully licensed advice businesses, its self-licensed advice offering and minority stakes in 16 advice practices for $92.7 million, but has announced it will post a multi-million-dollar loss as part of their separation from the company.
In an announcement to the Australian Securities Exchange today, AMP stated it had sold Charter, Hillross and AMP Financial Planning, along with Jigsaw, to Entireti Limited for $10.2 million and these will be housed in a new company, NewCo, of which AMP will retain a 30 per cent share.
At the same time, AZ Next Generation Advisory (AZ NGA) Limited has acquired AMP’s minority stakes in 16 advice practices for $82.5 million.
The twin deals, which were announced on 8 August, will result, according to AMP, in an anticipated accounting loss on sale of about $36 million due to separation and transition costs and this would be recognised in the company’s 2024 full-year results.
Those results, to be announced on 13 February next year, will also state AMP Advice will be treated as a discontinued operation.
AMP chief executive Alexis George said: “The successful completion of the AMP Advice transaction and smooth transition to Entireti and AZ NGA ensures the advice network is well placed to grow and prosper.
“We know the difference that quality financial advice makes to the lives of many Australians and we will continue to advocate for a strong and healthy profession on their behalf.”
Entireti chief executive Neil Younger noted the addition of NewCo to Fortnum Private Wealth and Personal Financial Services has increased the number of practitioners working for his firm to 1300 advisers across 400 businesses, and the transition has been smooth with minimal disruptions.
“We’re excited about extending our position as the best service provider to advice businesses in the market and we have the right team, operating model and strategy to achieve that,” Younger said.
“Our size enables us to deepen our services and solutions for advisers and their clients. At the same time, as a house of brands, we can provide personalised service and support, and preserve and foster the characteristics that make each underlying proposition unique.”
