AMP & AXA merger receives court approval

AMP is finally set to merge with AXA Asia Pacific Holdings Limited (AXA APH) after the Supreme Court of Victoria's recent approval.

Under the approved Share Scheme, AMP will acquire 100% of AXA APH, merging AXA APH's Australian and New Zealand businesses with those of AMP, and divesting AXA APH's Asian businesses to AXA SA.

This follows after AXA APH's minority shareholders decision to vote in favour of the proposed merge with the Australian and New Zealand businesses of AXA APH with AMP and to sell the Asian businesses to AXA SA.

"A merged AMP AXA will bring together two of Australia's longest standing businesses. It will deliver a new force in financial services by creating a company with the size and resources to be a strong competitor to the big four banks in wealth management." stated Mr Dunn, AMP Chief Executive Officer.

Under the Scheme of Arrangement to give effect to the proposal, AXA APH shareholders will receive the equivalent of A$6.43 per share (1), consisting of cash and AMP shares. AXA APH shareholders will also receive AXA APH's 2010 final dividend of 9.25 cents per share.

The Share Scheme is expected to become effective on 8 March 2011 when AXA APH lodges a copy of the Court order approving the Share Scheme with ASIC.

The Share Scheme's implementation date will be 30 March 2011 and normal trading of new AMP shares issued to AXA APH shareholders under the Share Scheme will begin under the ASX code 'AMP' on 31 March 2011.

References:
1. Assuming the Post Scheme VWAP is between $4.50 and $5.60. Refer to 1.2.2 in the AXA APH Explanatory Memorandum for more details.

Source: AMP 2011