| Consultants to foreing insurers say they are looking for cash-rich Indian corporates, more as a silent partner than anything else. |
| They believe AMP will get a better valuation if there's a foreign buyer. |
| ICICI Prudential Life CEO Shikha Sharma said,. "I see it more likely that foreign entrants would buy AMP Sanmar as it would be more valuable to them than to existing players." |
| AMP has already appointed a local financial adviser to review options for ownership of the business, which it said could include an outright sale or the introduction of a new partner. It is looking at three possible options in terms of ownership. |
| Graham Meyer, managing director, AMP Sanmar, told Business Standard earlier this week: "We could either find a new partner for Sanmar or could sell the entire business or even look at other investors." The review is expected to take several months. |
| N Sankar, chairman of the Sanmar group said: "With AMP looking at an outright sale of 26 per cent to an existing or a new player or bringing in a new partner in the joint venture, we also plan to sell our stake of 74 per cent". AMP chief executive Andrew Mohl said in Sydney the time was right to review AMP's presence in India. |
| "AMP Sanmar is in its fourth year of operations and, while growing from a small base, is still several years away from generating profits," he said. The value of AMP's stake in the joint venture was around $7.6 million as on December 31. |
| According to Mohl, AMP was focusing on growing shareholder value in its core wealth management businesses in Australia and New Zealand. |
| In Asia, the focus would be on asset management business through AMP Capital Investors, he said. Mohl said this approach better leverages existing capabilities and requires significantly less capital than life insurance. |
| AMP said that India would remain an important market for the group with a presence that included two infrastructure funds and other investments. |
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