Australian wealth manager AMP Ltd has confirmed that the recently received takeover approach from the US private equity firm Ares Management Corp values the company at AU$6.4 billion ($4.5 billion).

The indicative, non-binding conditional proposal to acquire 100% of the shares in AMP has an implied value of AU$1.85 per AMP share.

AMP’s potential sale comes after the company was hit with a $5 million fine over insurance churning and a sexual harassment scandal saw Debra Hazelton replace former chairman David Murray, capping two years that saw the stock lose three-quarters of its value.

In September, AMP’s board said it would evaluate the company’s assets and businesses following an increase in interest and inquiries from potential buyers. It also announced its decision to undertake a portfolio review to assess all opportunities holistically with a focus on maximising shareholder value.

Bloomberg revealed that buying AMP would represent a quick way for Ares to scale up in Australian funds management, where it began offering its first investment products this year.

“There is no guarantee that a transaction will eventuate and no certainty with regards to price,” AMP said, as reported by Bloomberg.

Ares said in a statement last week that the offer was subject to extensive due diligence and evaluation of the sale of some AMP assets. It might also involve co-bidders.