AMP cans Summerset float

Thursday 16th August 2007

AMP Capital has deferred its proposed IPO of retirement village company Summerset Group due to falls in global financial markets.

Yesterday the NZX50 index fell another 1.5%, while the Australian S&P200 index fell 3%. These declines mirror falls across global equity markets.

"Summerset is a quality business which AMP Capital Investors is very pleased to own. We believe that its inherent value exceeds what the market would be prepared to pay in the current volatile conditions. We are not willing to accept a lower price for the asset and are under no pressure to sell," AMP Capital managing director Murray Gribben said.

The existing shareholders will retain ownership of the business and will contribute capital towards Summerset's development plans.

AMP Capital says that, at some future date, it may reconsider conducting an IPO of Summerset.

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