AMP moves on AXA Asia Pacific
AMP made its first move in an attempt to acquire AXA Asia Pacific over the weekend, in partnership with AXA’s head office in France.
AXA Asia Pacific received an offer from AMP and France’s AXA SA early on Saturday morning, according to a statement made to the Australian Securities Exchange this morning.
AMP proposed to acquire all the shares in AXA Asia Pacific in a part share/part cash offer, with an implied price of $5.34 per share for the group’s minority shareholders. The offer consisted of 0.69 AMP shares and $1.38 in cash per AXA Asia Pacific share.
Under the arrangement AMP would acquire all the shares in AXA’s Asia Pacific operations, including those held by AXA SA — AXA Asia Pacific’s largest shareholder.
In an off-market agreement AXA SA would then acquire the Asian operations, with AMP to retain the Australian and New Zealand arms. The proposal gave AXA’s Australian and New Zealand operations an ungeared value of $3,991 million, while its Asian operations were valued ungeared at $8,239 million.
AXA Asia Pacific rejected the proposal as advised by its board of independent directors and under advice from Macquarie and Mallesons.
The group said the proposal “significantly undervalues” AXA Asia Pacific and does not take into account the group’s strategic position in the region.
Furthermore, the group said the offer was made against the backdrop of recent weakness in global markets. AXA Asia Pacific chairman Rick Allert said the offer was made before the growth in AXA’s Asian operations had been fully reflected in the group’s profitability.
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