December 17, 2009
National Australia Bank has announced it has agreed on key terms with AXA Asia Pacific (AXA AP) for NAB to acquire AXA AP’s Australian and New Zealand businesses.
AXA AP’s Independent Directors Committee have unanimously recommended that relevant AXA AP shareholders vote in favour of NAB’s Proposal
NAB’s announcement includes a statement that AXA AP’s Independent Directors Committee have unanimously recommended that relevant AXA AP shareholders vote in favour of NAB’s Proposal.
The NAB proposal values AXA AP at $4.61 billion, or the equivalent of $6.43 per AXA AP share. This compares with AMP’s revised offer that gave an equivalent value of $6.22 per AXA AP share and a cash value of $4.4 billion.
NAB welcomes the decision by AXA AP’s Independent Directors to support its proposal, with NAB CEO Cameron Clyne, commenting:
“The proposed merger of our Wealth business and AXA Australia and New Zealand would combine two successful and highly complementary businesses, and will achieve attractive scale benefits in the Australian superannuation, retirement income and insurance markets.”
Mr Clyne added, “The Proposal is consistent with NAB’s strategy of growing its wealth management franchise, most recently demonstrated through the acquisitions of Aviva Australia and a strategic alliance with JB Were.”
Due diligence has commenced and if the transaction is accepted by AXA AP shareholders and passes regulatory scrutiny, is expected to be completed in the second quarter of 2010.