Article – BusinessDesk

Jan. 17 (BusinessDesk) – Wealth manager AMP Ltd.’s A$13.3 billion bid for rival Axa Asia Pacific Holdings is in the best interests of minority shareholders, according to the deal’s independent expert report.

AMP-Axa merger in minority shareholders’ best interests, report says

By Paul McBeth

Jan. 17 (BusinessDesk) – Wealth manager AMP Ltd.’s A$13.3 billion bid for rival Axa Asia Pacific Holdings is in the best interests of minority shareholders, according to the deal’s independent expert report.

Grant Samuel gave the thumbs up to the cash-and-scrip offer, which will be voted on by Axa investors in March. It was more circumspect about the French parent Axa SA’s acquisition of the company’s Asian business, though declared it a “fair and reasonable” offer. Under the proposal, AMP will buy the entire unit and sell back the Asian businesses to the French parent.

“The price to be paid for the Asian businesses by Axa SA is likely to be the highest price achievable: there is little or no prospect that Axa APH could realise greater value for these businesses through selling them to a third party, given Axa SA’s controlling shareholding in Axa AP and its interest in acquiring the Asian business,” Grant Samuel’s report said.

The break-up of the business optimises its value, and “simply put, Axa APH is worth more on a break-up basis than as a standalone entity.”

Under the proposed scheme of arrangement, minority shareholders of AXA AP will get A$6.43 a share in stock and cash. The offer is for 0.73 AMP stock and a variable amount of cash, based on the weighted average trading price of AMP’s shares.

The completion of the deal will end the French company’s two-year bid to divest its Australasian business and bring the Asian units in-house after AMP got a second bite at the cherry when regulators blocked National Australia Bank’s bid to buy the wealth manager. The bank came in as a late bidder in December 2008 when AMP looked like it had already managed to secure the deal.

Shares in AMP were unchanged at $6.70 on the NZX and A$5.18 on the ASX, while Axa APH shares gained 0.2% to A$6.40 on Australia’s stock exchange.

(BusinessDesk)

Content Sourced from scoop.co.nz
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