AXA to Sell Its Dutch Operations to SNS Reaal For Euro 1,750 Million
June 04 2007 - 9:19AM
PR Newswire (US)
PARIS, June 4 /PRNewswire-FirstCall/ -- AXA announced today that it
has entered into a memorandum of understanding with SNS Reaal with
a view to finalizing discussions on the sale of its principal Dutch
insurance operations, comprising 100% of AXA Netherlands,
Winterthur Netherlands and DBV Netherlands, for a total cash
consideration of Euro 1,750 million, after consultation with trade
unions and workers' councils. AXA contemplates exiting the Dutch
insurance market given the limited possibilities to reach a leading
position through organic growth in the foreseeable future as this
market is highly competitive and dominated by large local players
(AXA's operations currently rank #7 in Life & Savings and #11
in P&C). AXA's management believes that the proposed sale to a
larger market participant is the most efficient way to maximize
value creation in the context of AXA's active capital management
discipline and its Ambition 2012 program, and that the proposed
transaction should also create new and exciting opportunities for
employees of its Dutch operations. Full year 2006 normalized
earnings(1) of AXA's Dutch operations were Euro 143 million, and
their contribution to AXA's Group EV was Euro 1,529 million, of
which Euro 1,349 million for Life & Savings EEV. First quarter
2007 NBV was Euro -1 million. AXA's Dutch operations concerned by
this proposed transaction will be treated as discontinued
operations (held for sale) in AXA's 2007 consolidated financial
statements. As a consequence, their earnings until closing date
will be accounted for in net income. Their sale should generate an
exceptional capital gain of approximately Euro 400 million, which
will also be accounted for in 2007 net income. A further
announcement will be made upon execution of definitive transaction
documents following completion of required consultations with trade
unions and workers' councils. The parties contemplate that the
definitive transaction documents will include customary closing
conditions for a transaction of this type including receipt of
customary regulatory approvals and expect the transaction to close
before year-end 2007. About AXA AXA Group is a worldwide leader in
Financial Protection. AXA's operations are diverse geographically,
with major operations in Europe, North America and the Asia/Pacific
area. For full year 2006, IFRS revenues amounted to Euro 79 billion
and IFRS adjusted earnings amounted to Euro 5,140 million. The AXA
ordinary share is listed and trades under the symbol AXA on the
Paris Stock Exchange. The AXA American Depository Share is also
listed on the NYSE under the ticker symbol AXA. This press release
is available on the AXA Group web site: http://www.axa.com/
IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING
FORWARD-LOOKING STATEMENTS Certain statements contained herein are
forward-looking statements including, but not limited to,
statements that are predications of or indicate future events,
trends, plans or objectives. Undue reliance should not be placed on
such statements because, by their nature, they are subject to known
and unknown risks and uncertainties. Please refer to AXA's Annual
Report on Form 20-F for the year ended December 31, 2005 and AXA's
Document de Reference for the year ended December 31, 2006 for a
description of certain important factors, risks and uncertainties
that may affect AXA's business. AXA undertakes no obligation to
publicly update or revise any of these forward-looking statements,
whether to reflect new information, future events or circumstances
or otherwise. (1) Non gaap measure, unaudited estimate. Normalized
earnings are the sum of AXA Netherlands, Winterthur Netherlands and
DBV Netherlands 2006 statutory net income, adjusted for
non-recurring items. Winterthur (including Winterthur Netherlands
and DBV Netherlands) FY2006 earnings were not included in AXA's
2006 consolidated earnings due to the closing of the acquisition of
Winterthur on December 22, 2006. DATASOURCE: AXA Group CONTACT:
investors, Etienne Bouas Laurent, +33-1-40-75-46-85, Paul- Antoine
Cristofari, +33-1-40-75-73-60, Emmanuel Touzeau, +33-1-40-45-49-05,
Kevin Molloy, +1-212-314-2893; media, Christophe Dufraux,
+33-1-40-75-46-74, Clara Rodrigo, +33-1-40-75-47-22, Armelle
Vercken, +33-1-40-75-46-42, Mary Taylor, +1-212-314-5845, all of
AXA Web site: http://www.axa.com/
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