AMP chief talks up AXA joint offer

AMP chief executive Craig Dunn has reiterated that the value of the insurer and wealth manager's A$11 billion joint offer with AXA SA to buy out AXA Asia Pacific Holdings is very compelling.

However, Dunn also said the proposed merger was not something AMP had to do.

AMP together with AXA of France, which already holds 53.93 per cent of AXA APH, is offering to buy out the minority holdings in the Melbourne based company. The cash and share proposal put to AXA APH's board earlier this month values the target's shares at A$5.34 each.

The unsolicited and conditional scheme proposal was rejected by AXA APH's board although chairman Rick Allert indicated it would consider a better offer.

AXA APH chief executive Andrew Penn said last week the consensus appraisal value for the company ranged up to A$5.76 per share.

But if the AMP and ASA SA deal is successful, AXA APH's minority shareholders get 0.6896 AMP shares plus A$1.3796 in cash for every AXA APH share they own.

"Combining with AXA would accelerate the delivery of key parts of our strategy and make us even more competitive, but it only makes sense at a price that's economically responsible," Dunn said.

"We're a financially disciplined company and will remain so.

"That said, we'd very much like this transaction to work, because of the benefits it would deliver to both AMP and AXA shareholders."

Ultimately, AMP is seeking to get control of AXA APH's Australian and New Zealand business, leaving AXA SA with all of AXA APH's Asian operations.

Dunn said the plan would result in AMP becoming a strong, non-bank competitor in the Australian financial services market.

- AAP