November 9, 2009
AXA Asia Pacific Holdings (AXA APH) has rejected a move by AMP and AXA APH’s global parent, AXA SA, to acquire AXA APH and split the group.
Under the joint proposal from AXA SA and AMP:
- AMP would take ownership of 100% of AXA’s Australian and New Zealand business; and
- AXA SA would acquire 100% of AXA APH’s Asian business
The current proposal, made to AXA APH over the weekend, is structured around an offer of AMP shares and cash, valuing the proposal at A$5.34 per AXA APH share.
This offer has been rejected by a committee of independent directors, who advise the proposal “… is inadequate and is not in the best interests of AXA APH’s minority shareholders.”
The proposed transaction would … create the fifth pillar in a new financial services landscape
From AMP’s point of view, Chief Executive Officer, Craig Dunn, said “The proposed transaction would strengthen AMP’s competitive capability in a consolidating market and create the fifth pillar in a new financial services landscape.”
“We’ll offer Australians an even stronger competitive wealth management alternative to the big four banks,” added Mr Dunn.
Rick Allert, AXA APH Chairman, said “AXA APH’s Independent Directors remain committed to AXA APH’s current strategies to maximise shareholder value. The Independent Board Committee will continue to appropriately and carefully consider all compelling strategic options available that are in the interests of the shareholders.”