Ending months of negotiations National Australia Bank Ltd
(ASX:NAB) and AXA Asia Pacific Holdings
(ASX:AXA) French parent company AXA SA, have finally agreed on a deal.
In a statement last night, NAB confirmed it has signed binding terms to acquire the Australian and New Zealand businesses of AXA Asia Pacific for $4.6 billion as part of a proposal to acquire all of the shares in the company.
As part of that proposal AXA SA is to purchase the Asian businesses of AXA Asia Pacific for $9.4 billion, out of which it will inherit $700 million of AXA Asia Pacific’s debt, which means NAB will acquire AXA Asia Pacific without debt.
CEO Cameron Clyne says the proposal provides the opportunity to enhance the access to competitive wealth management products and services within Australia and New Zealand.
NAB is offering $6.43 a share in cash or a combination of $1.59 in cash and 0.1745 NAB shares for each AXA Asia Pacific share.
The bank indicated that it may increase the scrip component of its offer because investors who chose the cash and scrip option would miss out on the company’s interim dividend.
NAB reported profit of $2.6 billion for the year to September 30, 2009.
