AXA Asia Pacific Holdings Returns To Profit

Post by Sharat on January 21, 2010 · Under Business News, Company News, Mergers & Acquistions, Wealth Management, banking · Comment

AXA Asia Pacific Holdings (APH), which is the subject of a takeover battle and two rival bids has swung back into profit after experiencing a loss in the previous year.
APH beat analyst expectations reporting a net profit after non-recurring items of approximately $675 million for the year ending December 31st. The company reported a net loss of $287.7 million during 2008.

Non-recurring items included profit on the sale of half of the wealth management group’s interests in India and the favourable resolution of a long running tax dispute.

AXA chief executive Andrew Penn said: “I am pleased with our strong performance, particularly in the second half of 2009.”

APH which is based in Melbourne is the target in a takeover battle involving two separate bidders and its parent AXA SA. Late last year wealth manager AMP launched a joint acquisition bid for the company with AXA SA.

In December National Australia Bank launched a rival bid for the company under the exact same terms but valuing the company at a higher $13.3 billion.

Under the terms of the transaction either AMP or NAB would acquire the entire company and then simultaneously sell the Asia operations to AXA SA, holding on to the Australian and New Zealand assets of the company.

NAB is currently the front runner after bidding a higher price than AMP and making its bid in cash. APH’s independent directors have endorsed the NAB transaction preferring it to the AMP bid which is made up in part by an equity component.

AMP and AXA SA have an exclusivity arrangement in place until February 6 and AMP has until then to revise its bid, which it may well do, for a failure to acquire APH would probably result in AMP itself becoming a target company and being eventually acquired by one of the Big Four banking Groups.

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