Expert Gives Nod To AMP-AXA Merger

Vanessa Doctor

18 January 2011

AMP's A$14.6 billion (around $14.56 billion) offer to acquire AXA Asia Pacific has been given the go-ahead by independent expert Grant Samuel, calling the deal "fair and reasonable," The Australian writes.

In an exploratory memo released to investors, Grant Samuel reportedly said that AXA APH had a A$6.03 to A$6.04 share value, thereby making AMP's A$6.43 per share cash and scrip bid acceptable. The offer values the life insurance and wealth management business at between A$14.06 billion and $15.32 billion. The company also noted that breaking up AXA's units and selling them would create higher value for AXA shareholders. Job cuts across redundant department are expected once the deal is in place.

AXA has been getting a lot of attention in the past year after National Australia Bank repeatedly tried to take over its Asian operations to no avail due to competition concerns from the ACCC. The latest deal will be put to a shareholder vote in 2 March, followed by a court hearing in 7 March.

AXA APH handles its parent firm's life insurance and wealth management businesses in the region, with offices in Hong Kong, China, Singapore, Indonesia, the Philippines, Thailand, India, Malaysia, Australia, and New Zealand.