Challenger mulls purchase of AMP's public markets businesses – AFR

Challenger Ltd. is considering the purchase of the public markets businesses of AMP Ltd.'s AMP Capital division, The Australian Financial Review's Street Talk blog reported March 2, citing unnamed sources.

Analysts' valuation of the businesses, which include AMP's global equities and fixed income offerings, is between A$500 million and A$1 billion, according to the publication.

The potential acquisition comes as AMP finalizes an agreement for the A$1.35 billion sale of a 60% stake in AMP Capital's private markets businesses to Ares Management Corp.

The Australian wealth management group said it will retain the remaining 40% shareholding in the private markets businesses and full control of the public markets businesses.

The deal with Ares, as well as any other potential agreement for its public markets businesses, is part of AMP's portfolio review, which was triggered by increased investor interest.