AXA Asia Pacific rejects takeover offer from AMP

AXA Asia Pacific rejects takeover proposal from AMP, AXA SA

Nov. 9 (BusinessWire) - AXA Asia Pacific Holdings rejected an unsolicited offer from AMP Ltd. and AXA SA to acquire the company for cash and stock amounting to A$5.34 a share.

The proposal “significantly undervalues AXA Asia Pacific,” said Rick Allert, the target company’s chairman, in a statement. It comes against a backdrop of weakness in global financial markets “and before the growth of our Asian operations is fully reflected in our profitability.”

The offer values AXA Asia Pacific at A$11 billion. Shares of AXA Asia Pacific last traded at A$4.30 on the ASX, valuing the company at A$8.9 billion. AMP was offering 0.6896 AMP shares and A$1.3796 cash for each AXA Asia Pacific share. The actual cash component is subject to the Australian dollar’s level against the greenback.

Under the proposal, AMP would have acquired all of the shares in AXA Asia Pacific, selling the financial services group’s Asian operations to AXA SA. The target’s French parent would sell its 53% holding to AMP.

Insurance group AMP, Australia’s largest provider of retirement plans, made the offer on Saturday and a committee of independent directors, with advisers Macquarie and Mallesons had since reviewed the proposal and advised that is was inadequate.

AMP’s shares last traded at $5.87 and were halted today for the announcements.

(BusinessWire)

© Scoop Media