FILE PHOTO: The logo of Australia’s biggest wealth manager, AMP Ltd, adorns their head office building in Sydney, Australia, October 28, 2016. REUTERS/David Gray

(Reuters) – Embattled Australian wealth manager AMP Ltd AMP.AX on Monday said a buyout offer from U.S.-based Ares Management Corp ARES.N had an implied value of A$1.85 per share, valuing the proposal at A$6.36 billion ($4.47 billion).

The offer price represents a premium of 21% to AMP’s closing price of A$1.53 on Friday, when shares had already surged after AMP announced the receipt of the offer earlier in the day.

In a brief update, the Sydney-based company said talks were at a preliminary stage between itself and Ares, and there was no certainty with regards to the price.

Ares’ offer comes at a time when AMP’s shares have lost more than two-thirds of their value since a public inquiry in 2018 exposed systemic wrongdoing at the company including charging fees for advice that was never given, taking insurance premiums from the accounts of dead clients, and misleading a regulator.

Earlier this year, AMP ceded its position as Australia’s largest wealth manager to IOOF Holdings Ltd IFL.AX after its rival bought National Australia Bank Ltd’s NAB.AX financial advisory arm.

Reporting by Rashmi Ashok in Bengaluru; Editing by Daniel Wallis

Via Reuters Finance

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