AXA APH receives increased offer
AMP Limited (AMP) and AXA SA have increased their offer for AXA Asia Pacific Holdings Limited (AXA) after the original proposal on 9 November 2009 was rejected. Under the revised proposal, AXA APH shareholders would receive a fixed cash component of $1.92 per share rather than a variable cash component of about $1.38, on top of the 0.6896 AMP shares originally offered.
The Independent Board Committee of AXA APH said it intends to take the appropriate time to carefully consider this Revised Proposal and will provide an update to the market when this assessment is completed.
AXA APH said the offer implies a price of $6.22 per AXA APH share and compares to the implied value of the initial proposal of $5.34 per AXA APH share.
The company added that the revised proposal represents an ungeared value of about $4.41 billion for AXA APH’s Australian and New Zealand business and approximately $9.63 billion for AXA APH’s Asian business.
AMP and AXA SA advised that this price represents their best and final proposal.
AXA APH chairman, Mr Rick Allert, said the company was in an enviable position in Asia delivering strong growth and an Australian and New Zealand business that is well positioned to take advantage of the recovery in markets and to respond to the anticipated future regulatory changes.
“The Independent Board Committee will take the appropriate time to carefully consider the Revised Proposal and we will update our shareholders and the market when this assessment has been completed,” Mr Allert said.
The offer remains conditional on completion of extensive due diligence, the unanimous support of the Independent Board Committee, execution of the agreements to implement the transaction and a range of other important conditions.
AMP and AXA SA stated that the proposal would lapse if binding transaction documents are not entered into prior to the close of business on 21 December 2009.
At the close of trade Friday, AXA Asia Pacific shares were trading at $5.82, while AMP shares were trading at $6.23.
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