AMP sells Cogent for £245m

AUSTRALIAN financial services giant AMP has sold its British back-office business Cogent to France's BNP Paribas for $650m (£245m). The sale comes after a review of the British operations in February.

'Following this review, AMP concluded that the most value for shareholders and the best outcome for clients and employees will be achieved by the sale of the business,' chief executive Paul Batchelor said.

The sale price includes a repayment of $22m for AMP loans to Cogent and a contribution from BNP Paribas to disengagement costs of $11m. Up to 28% of the total amount will be paid a year after the sale is completed, and will be dependent on Cogent achieving agreed revenue targets.

Cogent, an asset administration company, was acquired by AMP when it bought the Henderson fund management operation in 1998. Henderson will remain a client of Cogent, which administered assets worth more than $400bn for more than 70 clients last year.

The Cogent sale is part of a significant restructuring for AMP in Britain, where the Sydney-listed firm now draws about 60% of its profits.

AMP has rebranded its National Provident Institution, London Life and Pearl Assurance operations as AMP, and recently paid £28m for online advisory service Interactive Investor International.