Nov. 8, 2009 (PR Newswire) -- PARIS, Nov. 8 /PRNewswire-FirstCall/ -- AXA announced that a joint offer was submitted by AMP and AXA to the AXA Asia Pacific Holdings ("AXA APH") board on November 6, 2009.
AXA and AMP have entered into an exclusive arrangement whereby they have agreed that, if the offer is successful, AXA would take ownership of 100% of the Asian business and AMP would take ownership of 100% of the Australia & New Zealand business.
If successful, this offer would be equivalent to AXA selling its 54% stake in AXA APH's Australia & New Zealand business while acquiring the 46% of AXA APH's Asian operations that AXA does not own for a net cash payment of Euro 1.1 billion.
"This transaction would reinforce AXA's growth profile by doubling its exposure to the Asian Life & Savings market and further optimize the corporate structure of the Group," said Henri de Castries, Chairman of the AXA Management Board.
"The proposed transaction offers to AXA APH's minority shareholders a significant premium and the opportunity to become shareholders of a larger and stronger AMP Group which will permit them to share directly in the significant synergies that this transaction would create."
Note: A separate press release has been issued for the Australian market. This press release is enclosed in the cover e-mail and is available on www.axa.com website in the "investor relations" section.
Transaction structure & conditions
The joint offer submitted to the AXA APH board contemplates a Scheme of Arrangement pursuant to which:
-- AMP would acquire 100% of AXA APH's outstanding shares for A$ 11.0bn
(based on AMP stock price of A$5.75), with the objective of retaining
and integrating the Australian and New Zealand operations (including the
currently listed holding company). AMP would buy AXA's shares in AXA APH
for A$ 6.0bn in cash.
-- As part of the transaction, AXA would acquire from AMP 100% of AXA APH's
Asian operations for $A 7.7bn in cash, with the objective of increasing
its exposure to high growth markets.
The price offered by AMP to AXA APH's minority shareholders is $A 5.34 per share of which 26% would be paid in cash and 74% in AMP shares. This offer provides a 31% premium (vs.
