AMP Capital, Macquarie to reap A$93M as DUET Group internalises management

Tuesday 31st July 2012

AMP Capital and Macquarie Capital Group will reap as much as A$93 million after agreeing to allow ASX-listed energy investor Duet Group to internalise its management contract.

AMP and Macquarie hold a half share each in the manager of Duet, whose investments include the Dampier Bunbury Pipeline, United Energy Distribution and Multinet Gas.

Under a deal which is subject to approval by at least 50 percent of Duet's security holders, the current managers would get A$41 million apiece to subscribe for Duet stapled securities and share an additional A$11 million for providing support services during the transition to independent management, Duet said in a statement to the ASX.

They'll also receive A$5 million as an advisory fee for simplifying Duet's structure to be compatible with internal management.

The proposal would halve Duet's annual corporate operating costs and add to operating cash flows starting in 2014, Duet said. It affirmed its guidance for 2013 distributions of 16.5 Australian cents per stapled security.

The plan has the support of Duet's independent directors, subject to an independent assessment report from Grant Samuel. Security holders would vote in late October.

Duet was established in 2003 as a group of wholesale unit trusts, covered by its stapled securities. It consists of three registered managed investment schemes and an Australian public company, which are 'stapled' together to form one ASX-listed security.

Duet last traded on the ASX at A$1.95 and has gained 23 percent in the past 12 months. It is rated a 'hold' based on a Reuters survey of eight analysts, with a price target of A$1.86.

BusinessDesk.co.nz

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