Axa is set to spin out its private equity unit AXA Private Equity in a management-led takeover, in which Axa will hold 21% stake, with employees buying 46% and the remaining stake to be sold to other investors.
In March 2013, the French insurer unveiled the structure of a planned spin-off that valued its private-equity unit at €510m ($690.62m).
Under this planned structure, AXA will own a 26.9% stake in the operation and earn €200m in capital gain from the sale of majority control to the unit’s management and staff.
AXA Private Equity head Dominique Senequier told the Financial Times that the final terms would see AXA holding restricted to 21%, a little less than previously indicated, due to high demand from employees who will own 46%.
Under the terms of the restructuring, Senequier will own 10%, while French bank Assurances du Credit Mutuel will purchase approximately 13% and wealthy French families will take almost 20% of the Paris-based company.
Mrs Senequier was quoted by the news agency as saying that, "Private equity has to be more about shared outcome, shared value and profit with investors, employees and companies we buy."
The name of the new insurance company will be revealed soon, for which Axa has pledged nearly €4.8bn in commitments until 2018.