AXA APH board now unanimously recommends AMP takeover bid
All of AXA Asia Pacific's (AXA.AX) independent directors have now backed AMP's $13.3 billion takeover bid from parent AXA SA (AXAF.PA) and AMP (AMP.AX).
The multibillion-dollar takeover deal for AXA Asia Pacific (ASX: AXA) hit a potential hurdle on Tuesday when the board of the sixth largest wealth manager in the $1.2 trillion Australian wealth management sector failed to meet a key condition of unanimously backing the proposal.
One undecided independent director, who sought more information on the offer, today concluded the deal is in the best interests of AXA AP's shareholders.
The board as a whole has swung behind the offer saying they will recommend it to shareholders, subject to no superior proposal emerging and once the terms had been reviewed by an independent expert.
AXA SA will take the Asian business of AXA Asia Pacific while AMP will own the Australian and New Zealand business to turn the top fund manager in the world's fourth largest wealth management market.
Wealth manager AMP, together with AXA APH's French parent AXA SA, made a fresh offer to buy rival AXA APH on Monday.
Under the proposal, AXA APH minority shareholders would receive AMP shares and cash worth at least A$6.43 for each AXA APH share, subject to the movement of the AMP share price within a certain band.
AMP's new deal comes after the Australian Competition and Consumer Commission knocked back NAB's bid for AXA AP.
In early trade, AMP shares had lifted as much as 3 cents, or 0.6 per cent, to $5.19. Shares in Axa, meanwhile, gained 4 cents, or 0.6 per cent, to $6.24.
With Reuters