AMP shareholders write to ASX to protest lack of shareholder vote for life insurance divestment
Shareholders in AMP [ASX:AMP] have written to the ASX to protest the lack of vote on the divestment of company’s life insurance business, the Australian Financial Review reported. According to the report, shareholders have complained about the ASX’s ruling that AMP’s life divestment does not meet criteria under Chapter 11 of the ASX listing rules requiring a shareholder vote.
The article said that an ASX spokesperson confirmed that a number of parties have approached the exchange about the transaction and it would look closely at any new information.
The report noted that the Australian Council of Superannuation Investors (ACSI) is among the parties to have written to the ASX. The paper said that Edward John, ACSI’s executive manager of governance, declined to say whether the group wrote to the ASX, but noted that shareholders should be given the right to vote on company transforming transactions.
The paper said that an AMP spokesperson noted that the company discussed the deal with the ASX and specifically with reference to Chapter 11. The spokesperson noted that the ASX confirmed that the divestment would not trigger a vote under Chapter 11 of the listing rules.
The item noted that fund manager Merlon Capital criticized the life insurance divestment last week and has engaged Arnold Bloch Leibler to help advise on its efforts to put the deal to a shareholder vote. Arnold Bloch Leibler partner Jeremy Leibler said that he has written to the ASX’s chief compliance officer and urged it to apply the listing rules.
AMP announced last month that it has reached a deal to sell AMP Life to Resolution Life for AUD 3.3bn (USD 2.4bn).