National Australia Bank Launches Rival Bid for Axa Asia Pacific Holdings

Strategic Insights -

National Australia Bank (NAB) has launched a rival bid for Axa Asia Pacific Holdings, estimated to be worth A$13.3 billion, in a bid to acquire the company's operations in Australia and New Zealand. The new offer of A$6.43 per share surpasses the joint bid of A$6.22 by AMP Ltd. and Axa S.A. earlier this week. Axa Asia Pacific's board of directors has reviewed the new proposal and is considering it.

Key Takeaways:

  • NAB's rival bid for Axa Asia Pacific Holdings is estimated to be worth A$13.3 billion, surpassing the joint bid of A$12.9 billion by AMP Ltd. and Axa S.A.
  • The new bid offers A$6.43 per share, representing a 50% premium to the closing share price of Axa Asia Pacific on November 6.
  • NAB's proposal includes an alternative option of A$1.59 in cash and 0.1745 NAB shares for each Axa Asia Pacific share.
  • The acquisition of Axa Asia Pacific would allow NAB to create a market leader position in life insurance and wealth management in Australia.
  • NAB's A$6.43 cash offer represented a 50% premium to the closing share price of Axa Asia Pacific on November 6, while the joint bid of A$6.22 by AMP and Axa S.A. represented a 53% premium in the insurer's closing share price on November 5.
  • The proposed merger of NAB with Axa Australia and New Zealand would achieve "attractive scale benefits" in Australia's superannuation, retirement income, and insurance markets.
  • NAB plans to pay A$4.6 billion for Axa Asia Pacific's operations in Australia and New Zealand.
  • Axa S.A., which owns 53.9% of Axa Asia Pacific, would need to be convinced to team up with NAB in the takeover bid.
  • AMP has an exclusive agreement with Axa S.A. that expires on February 6.

Statistics:

  • Estimated value of NAB's rival bid: A$13.3 billion
  • Estimated value of joint bid by AMP Ltd. and Axa S.A.: A$12.9 billion
  • Premium offered by NAB's bid: 50% premium to the closing share price of Axa Asia Pacific on November 6
  • Premium offered by joint bid by AMP and Axa S.A.: 53% premium in the insurer's closing share price on November 5
  • Total amount to be paid by NAB for Axa Asia Pacific's operations in Australia and New Zealand: A$4.6 billion

Sources:

  • A.M. Best via COMTEX
  • National Australia Bank
  • Axa Asia Pacific Holdings
  • AMP Ltd.
  • Axa S.A.
  • Goldman Sachs JBWere
  • BestWire