tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 7th, 8:03AM

Insurance

rss
Latest Headlines

NAB negotiates 'binding terms' with AXA SA for AXA AP purchase

National Australia Bank and French insurer AXA SA have agreed "binding terms" for their proposed $13.3 billion acquisition of AXA Asia Pacific, which will split the wealth manager and insurer between its Asian and Australasian businesses.

Wednesday, March 31st 2010, 11:50AM

by BusinessDesk

AXA SA currently owns 54% of the Australian-based AXA AP. Under the terms of the deal, NAB will offer investors in AXA AP either A$6.43 a share in cash, or A$1.59 and 0.1745 of a NAB share per AXA AP share. AXA SA will then buy AXA AP's Asian businesses for A$9.4 billion, out of which A$700 million debt owed to the French company will be repaid.

Under the terms of the agreement, AXA SA will offer to subscribe for A$600 million of unsubordinated notes issued by NAB's wealth management business. The proposal, which is subject to minority shareholder and regulatory approval, has been recommended by AXA AP's directors in the absence of a better one. AXA AP's stock last traded at A$6.35 on the ASX and have advanced 76% in the past 12 months.

Last December, NAB trumped an offer of A$6.22 a share from wealth manager AMP Ltd. Since then, the deal has been simmering as the AMP offer remains on the table, while the Australian Competition and Consumer Commission said the NAB deal was a "higher level of concern" than the AMP deal.

"The proposal agreed today provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand," said NAB chief executive Cameron Clyne.  

NAB's existing MLC wealth management unit and AXA Australia and New Zealand "are among the most trusted financial services brands in Australasia and collectively hold more than A$149 billion in funds under administration and management," he said.

NAB will be able to use the AXA trademark in Australasia for two years, and will keep AXA AP's 50% interest in the AllianceBernstein Australia joint venture.

Last month, AXA New Zealand chief executive Ralph Stewart told financial advisers that the company's new owners, regardless of who they are, have no reason to shake up the business with the opportunities that are available in the life insurance market. He said he expected the deal to be finalised by June.

« AIA NZ dismisses Prudential sale rumoursSovereign takes advantage of medical advancements »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Apex Advice buys life business
Auckland-based Apex Advice has acquired a well-established insurance advice business.

Chubb's latest champion
Young maths prodigy takes out actuarial award.

New book: Unlocking group insurance
Christchurch adviser Corey Williams has released a new book helping advisers and employers put group insurance schemes in place.

Insurer gets warning from RBNZ
Geneva Finance's insurance subsidiary Quest Insurance been given a warning from the prudential regulator.

News Bites
Latest Comments
  • Advisors must take note of supervisor guidelines on AML/CFT
    “When I read this, the following memory plucked a note. Venue was a US financial planning conference maybe 30 years ago. Speaker...”
    17 hours ago by Murray Weatherston
  • Partners kills its matrix
    “@Backstage, thanks. I agree there is no relationship to CoFI, though, from a service perspective, I have two other providers...”
    3 days ago by JPHale
  • Partners kills its matrix
    “Partners Life has decided to stop using its COM for advisers as it believes the system may breach the CoFI regulations which...”
    4 days ago by Amused
  • Partners kills its matrix
    “Insurance companies should stick to their lane. They are not advisers and even those that employ advisers should not be crossing...”
    4 days ago by Tash
  • [GRTV] The nitty gritty of Smart’s ETFs
    “Advisors should consider all gateways into investment markets including cheaply priced ETFs to provide access to low priced...”
    4 days ago by Pragmatic
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x