Revised Offer for AXA Asia; Sydney Stocks Up

Darlington Musarurwa
14 Dec, 2009
New York City

AXA Asia Pacific Holdings receives a sweetened A$12.9 billion offer from AMP and AXA. Woodside plans to raise A$2.5 billion in a rights offering. Westpac launches A$1 billion residential mortgage securities offer, the first bond offering in two years.

[R]3:00 AM New York, 7:00 PM Sydney - AXA Asia Pacific Holdings receives a sweetened A$12.9 billion offer from AMP and AXA. Woodside plans to raise A$2.5 billion in a rights offering. Westpac launches A$1 billion residential mortgage securities offer, the first bond offering in two years.[/R]

Australian stocks gained as markets in Asia after Abu Dhabi offered $10 billion in emergency funding to Dubai World. The bailout lifted worries that financial crisis may spread to other emerging markets and generate more losses at banks.

Commodity stocks however closed weaker. In Sydney trading ASX 200 Index gained 0.4% or 18.8 to 4,654.00.

Of the ASX 200 index stocks 108 gained, 67 dropped, and 25 were unchanged. Alumina Ltd. led gainers in the index shares with a rise of 6.4% followed by Karoon Gas Australia climbing 5.7%.

Axa, AMP Revise Offer for AXA Asia Pacific

AXA Asia Pacific Holdings reported today it has received a revised conditional proposal from AMP Ltd. and AXA SA of A$12.9 billion.

The initial proposal was rejected by a committee of independent directors on November 9.

Under the new proposal, the revised offer to minority shareholders will be 0.6896 AMP shares, with the same ratio as in the initial proposal and cash of A$1.92 compared to cash of A$1.38, an increase of 54%.

In addition, the offer represents an un-geared value of A$4.4 billion for AXA APH Australian and New Zealand business and A$9.6 billion for AXA APH’s Asian business.

Woodside in A$2.5 billion Equity Raising

Woodside reported today that it intends to raise A$2.5 billion through a share placement in order to fund its LNG expansion projects.

The company will take its entitlement in the offering and invest A$862 million in the company’s shares in order to maintain its 34% share.

Through the fully underwritten accelerated renounceable entitlement offer, shareholders can buy one new Woodside shares for every 12 shares held.

New shares will be offered at A$42.10 each, which is a 10.8% discount to its last traded price of A$47.18.

Shares will resume trading on December 17.

Westpac Offers A$1 billion RMBS

The Australian reported today Westpac Bank launched A$1 billion offer of residential mortgage backed securities, the first by a major bank since May 2007.

According to the report, statistics from the Reserve Bank of Australia indicate that the value of outstanding RMBS has dropped 40% from June 2007 to A$100 billion.

Westpac’s offer consists of a “pool of home loans that are around three years old with a weighted average loan-to-value ratio of 58.28 per cent.”

In addition, the issue is divided between $920 million of Class A notes carrying a preliminary AAA rating, $55 million of AA-rated Class B notes and $25 million of Class C bonds that are not rated.

Gainers & Losers

Alumina Ltd. led gainers in the ASX 200 index stocks with a rise of 6.4% followed by gains Karoon Gas Ltd. of 5.7%, in Macquarie Office of 5.4%, in Mount Gibson Iron of 4.7%, and Prime Infrastructure of 4.6%.

St Barbara Ltd. led decliners in the ASX 200 index stocks with a fall of 4.8% followed by losses in Eastern Star Gas of 3.9%, in Mincor Resources of 3.8%, in Sundance Resources of 3.5%, in Extract Resources of 3.4%.

Commodity stocks dropped as gold prices declined 0.6% to $1,119 per ounce and crude oil prices decreased 1.3% to $69.70 per barrel.

Minara Resources plunged 2.8% to A$0.70, Panoramic Resources decreased 2.1% to A$2.34 and Avoca Resources tumbled 1.9% to A$1.84.

Other Movers

Alumina Limited the aluminum producer advanced 6.3% to A$1.66.

Atmos Energy Corporation added 1.2% to A$28.99 after the oil and gas producer has filed an application with the Missouri Public Service Commission seeking to adjust the infrastructure system replacement surcharge on the natural gas bills of its customers.

Babcock & Brown Infrastructure Group gained 4.5% to A$3.91 and Eastern Star Gas Limited fell 3.8% to A$0.75.

Karoon Gas Australia Ltd rose 5.7% to A$8.6% and Macquarie Office Trust climbed 5.3% to A$0.29.

Mincor Resources NL fell 3.8% to A$1.76.

Qantas Airways Limited climbed 3.4% to A$2.67 after the airline said Monday that it will be increasing ticket prices on selected long haul international routes by up to 5% from Dec. 18.

St Barbara Limited decreased 4.8% to A$0.29 after the gold miner said Terrain Minerals announced it has earned a 60% interest in the Black Cat gold joint venture project from the company.