AXA and AMP have made a joint proposal to AXA Asia Pacific Holdings (AXZ APH) whereby AXA will dispose of its 54% stake in AXA APH to AMP and will acquire AXA APH Asian operations.
AXA has said that a joint proposal by AXA and AMP has been made to AXA APH whereby AMP would acquire 100% of AXA APH, retaining AXA APH’s Australia and New Zealand businesses and divesting AXA APH’s Asian businesses to AXA.
This transaction, if successful, would allow AXA to increase its exposure to high growth Asian markets where AXA APH Asian operations continued to perform strongly in 2010.
The proposal is subject to completion of due diligence by AMP and agreement between AMP, AXA APH.
AXA has said that if a final agreement is reached and a final transaction is announced, it would be implemented through a scheme of arrangement which requires approval of AXA APH minority shareholders and would be subject to customary conditions, including Australian and Asian regulatory
Under the proposal, AXA APH shareholders will receive the equivalent of A$6.43 per share, consisting of cash and AMP shares, as well as AXA APH’s 2010 final dividend of up to 9.25 cents per share.
If the parties reach a final agreement on the proposal, it is expected to be completed in late March 2011.