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

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.