AXA Asia Pacific Holdngs (AXA) has today released an Investor Presentation that addresses the takeover offer from AMP and AXA’s parent, AXA SA.
The document summarises the takeover offer and the reasons the AXA Board has rejected it, indicating it was not in the best interests of AXA’s minority shareholders and that it significantly undervalued AXA.
The main body of the document deals with AXA’s two business regions, providing an upbeat assessment of its Asian operations as a ‘highly valuable strategic footprint‘ and its Australian and New Zealand businesses as a ‘model oriented to the future.’
Since the initial announcement, there has been little public movement from the key players, but it is possible that a further offer will be made by AMP and AXA SA that will see an implied offer price of around $6 per AXA share (the original offering valuing AXA shares at $5.34), while the market is presently valuing AXA shares at around $5.90 in early afternoon trade on 18 November, suggesting it also believes a higher offer will be made.
Commentators are in agreement that a combined AMP/AXA Australia and New Zealand business will indeed see a fifth financial services pillar created that would dominate the financial services landscape.
It would be:
- Number one for adviser numbers, totalling more than 4,000 advisers operating under the AMP banner
- Number one for risk insurance sales and inforce business
- Number one for retail superannuation and number one for retirement income business
Stay tuned for further developments …
