Australian financial services provider AXA Asia Pacific Holdings (AXA APH) has rejected a $10-billion joint takeover bid from its majority stakeholder AXA and rival AMP.
The Australian entity has a good presence in Asia, and has operations in India through Bharti AXA Life.
French insurer AXA has a 51 per cent in AXA APH.
Noting that the proposal undervalues the company, AXA APH Chairman Rick Allert today said the "proposal has been received against the backdrop of recent weakness in global financial markets, and before the growth of our Asian operations is fully reflected in our profitability".
Allert, in a statement, added that the non-financial terms of the proposal also imposed excessive uncertainty and risk on the company's minority shareholders.
As per the takeover proposal, including both cash and stock, Australia-based AMP would acquire all the shares of AXA Asia Pacific, including AXA's majority stake. Later, AXA APH's Asia operations would be sold to AXA.
The offer made in November was worth little over $10 billion.
AXA APH said that its Asian markets, including India and China, are characterised by high savings rates, low life insurance penetration, favourable demographics and emerging national savings systems, among others.
"It is impossible to replicate this footprint due to the high barriers to entry, established relationships and the breadth of the operations," it added.
