AXA gets valued ahead of takeover talks
AXA Asia Pacific has commissioned consultancy group Grant Samuel to conduct an independent valuation of its operations so that shareholders have a yardstick to compare its parent’s - AXA SA - share acquisition offer.
AXA SA’s initial offer back in August was to acquire the 48.4 per cent of AXA Asia Pacific stock it does not own buy paying $3.75 for each share in a 50/50 cash and scrip offer.
In it’s conditional proposal AXA SA had hoped to reach an agreement on all aspects of a transaction by mid-September, however the time frame of any deal has been pushed out until the end of the year.
The offer on the table is also likely to be amended given the targeted group’s stock is trading at around $3.90.
According to AXA Asia Pacific chairman Rick Allert, the Committee of Independent Directors of AXA Asia Pacific are likely to meet with AXA SA representatives in late October to early November following the completion of the Grant Samuel assessment.
Allert does not set out a specific timeframe in which talks will be held between the committee and AXA SA, but does say the latter now wishes to have shareholders consider and decide upon any proposal before the end of the year.
The independent committee has also appointed Macquarie Bank as its financial adviser along with Mallesons Stephen Jaques as its legal consultant.
AXA Asia Pacific recently declared a 5.25 cent dividend, which effectively lowers the initial offer price to shareholders to $3.6975.
AUTHOR
Craig Phillips
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