U.S.-based Ares Management plans to buy 60% of the private markets business of AMP Ltd’s asset management arm for A$1.35 billion ($1.06 billion), the pair said on Friday, weeks after scrapping a bid for all of the Australian company.

AMP shares on Friday surged 6.5%, far outperforming its peers and a broader market deep in the red, to A$1.485 – their biggest rise since November last year.

Under the deal, the Australian wealth manager will retain 40% of AMP Capital’s private markets business, worth A$900 million, which deals in infrastructure and real estate investments. The whole joint venture is valued at A$2.25 billion.

Earlier in February, AMP said Ares had withdrawn a A$6.36 billion takeover proposal for the whole company, instead continuing talks over AMP Capital – considered its most valuable unit.

Read more at: Reuters

ByNikhil Kurian Nainan, Shailesh Kuber and Sam Holmes