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UPDATE 1-Australia's AMP raises $538 mln to fund turnaround

Published 10/09/2019, 11:25 am
Updated 10/09/2019, 11:30 am
© Reuters.  UPDATE 1-Australia's AMP raises $538 mln to fund turnaround
AMP
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(Adds total capital raising, details on placement, background)

Sept 10 (Reuters) - Australia's AMP Ltd AMP.AX said on Tuesday it had raised about A$784 million ($538.1 million) to fund the restructuring of its flagship business following revelations of misconduct and poor governance.

It raised about A$134.1 million from existing shareholders in Australia and New Zealand, topping up the A$650 million it raised in August under a separate placement to institutional investors.

A public inquiry into Australia's financial sector last year found AMP had wrongfully charged fees to thousands of clients for years and had tried to mislead authorities about such misconduct. the revelations, AMP has lost billions of dollars in fund outflows and its market value has slumped by more than two-thirds.

It unveiled a restructuring plan last month, including major changes at its flagship wealth-management business in Australia and New Zealand. placement to existing shareholders will see 83.8 million shares issued at A$1.60 on Sept. 13. It said it received about 15,000 valid applications from shareholders.

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