AXA Asia-Pacific (ASX:AXA) shares yesterday leaped 32.56% in anticipation of an improved takeover offer, after the board rejected an initial bid from its parent and AMP (ASX:AMP).
AXA Asia-Pacific yesterday rejected an $11 billion joint buyout bid from its major shareholder AXA SA and AMP (ASX:AMP), but hinted it will consider an improved offer.
AXA and AMP had offered $5.34 in cash and AMP shares – a 31% premium – for each share of AXA Asia Pacific.
Under the proposal, AXA would assume control of the Asia-Pacific operations, while AMP would take over the Australian and New Zealand businesses.
But after consulting with its independent directors, AXA decided that the proposal was inadequate, the company informed the market yesterday.
“The proposal significantly undervalues AXA Asia-Pacific, [and] has been received against the backdrop in recent weakness in global financial markets and before the growth of our Asian operations is fully reflected in our profitability.
AXA shares on the ASX have climbed 2.11% today in addition to yesterday’s gains, and was trading at $5.82 at time of writing.