Market View From the Top from Spicers CEO Gordon Noble-Campbell

AMP and AXA look set to combine

19 January 2011

Over the past few months there has been some discussion in the media about AMP’s proposal to purchase AXA Asia Pacific - Spicers parent company. AXA Asia Pacific (AXA APH) is a subsidiary company of AXA SA (France) which currently has a 54% shareholding in AXA APH.

What’s happening?

AMP, AXA Asia Pacific (AXA APH) and AXA SA (France) have agreed that AMP will purchase AXA APH’s Australian and New Zealand businesses and sell AXA APH’s Asian businesses to AXA SA (France).

Why is this happening?

This is a friendly arrangement where AMP wishes to grow its market share in Australia and New Zealand. AXA SA (France) wants to focus more on growing its position in Asia.

What does this mean for Spicers and clients?

We will continue to focus on the important job of managing the wealth of our clients.

Despite many changes of ownership during Spicers 23 year history, we have remained focused on ensuring client needs are met and this important goal will continue.

Is there a good cultural fit between AMP, AXA and Spicers?

Yes. There is a strong cultural alignment between the businesses with AMP, AXA and Spicers financial advisers sharing a focus on providing their clients with quality advice to help them meet their financial goals.

How much is AMP paying for AXA APH?

Around A$14.6 billion: Under the proposal AXA APH shareholders will receive A$6.43 per share consisting of cash and AMP shares, as well as receipt of AXA APH’s 2010 final dividend of up to 9.25 cents per share.

When will the transaction be completed?

AXA Asia Pacific shareholders will be asked to vote on the transaction on Wednesday, 2 March 2011. It is expected that the transaction will be fully finalised by the end of March 2011.