NAB and AXA agree to terms
National Australia Bank Limited (NAB) has agreed to terms with Asia Pacific Holdings Limited (AXA) and its French parent AXA to purchase the Australian and New Zealand businesses of AXA APH for $4.6 billion as part of a proposal to acquire all of the shares in AXA APH. NAB said as part of the proposal AXA has agreed to purchase the Asian businesses of AXA APH for $9.4 billion.
The company added that it would not be required to pay the $700 million AXA APH A&NZ debt owed to AXA.
NAB said it would acquire AXA APH’s A&NZ wealth management and insurance businesses, including the advice businesses of ipac, Genesys, AXA Financial Planning and Charter Financial Planning.
The company will also be able to use the AXA trademark in Australia and New Zealand for two years to assist with transition.
NAB said subject to agreeing new joint venture arrangements, it would retain AXA APH’s 50% interest in the AllianceBernstein Australia joint venture.
AXA APH chairman, Rick Allert, said the independent directors continue to unanimously recommend the proposal, in the absence of a superior proposal and subject to the opinion of an independent expert.
The proposal remains subject to AXA APH minority shareholder approval among other conditions and regulatory approvals, including the approval of the Federal Treasurer and that there is no objection to the merger from the ACCC or APRA.
NAB Group CEO, Cameron Clyne, said MLC and AXA Australia and New Zealand collectively hold more than $149 billion in funds under administration and Management.
“The proposal agreed today provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand,” Mr Clyne said.
”It is also an attractive, strategically aligned opportunity that enhances NAB’s activities in the growing wealth management industry.”
NAB and AXA APH said minority shareholders would have the option to receive either cash of $6.43 per AXA APH share or $1.59 in cash and 0.1745 NAB shares per AXA APH share.
The company added that the shareholders who elect to receive the cash and NAB share consideration under the proposal will also be entitled to receive the value of NAB’s 2010 interim dividend.
At the close of trade Tuesday, NAB shares were trading at $27.70, while AXA APH shares were trading at $6.35.
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