AMP AXA merger creates big stakes in NZ companies

The merger of AMP and AXA in Australia has created a 20.3 percent stake in New Zealand company Skellerup Holdings Ltd, which is over the 20 percent trigger for a takeover offer.

Takeovers Panel chief executive Kerry Morrell said AMP AXA had an application before the panel in relation to the Skellerup stake and it would be consistent with the panel's policy on upstream acquisitions to grant an exemption for the combined stake.

AMP AXA also confirmed that the application had been made and said the company had no intention of acquiring additional shares in Skellerup.

Skellerup's acting chief executive David Mair said he received a phone call on Friday advising him of the issue.

He said AMP Capital Investors had just under 20 percent of the company prior to the merger and it would be disappointing if they had to sell shares to get the combined stake below 20 percent.

"AMP have been fantastically supportive of our company over the last few years," he said.

The $A14 billion ($NZ19 billion) acquisition of AXA Asia Pacific Holdings Ltd by AMP Financial Services Holdings Ltd became effective on March 31 and substantial security holder notices are currently being filed to NZX.

The merged AMP AXA owns 7.024 percent of Fletcher Building, 6.28 percent of Fisher and Paykel Appliances, 5.582 percent of SkyCity Entertainment and 6.209 percent of Fisher&Paykel Healthcare.

The situation is complicated as AMP's funds management arm in New Zealand, AMP Capital Investors, has always reported directly through to AMP's head office. AXA New Zealand's funds have their own arrangements and mandates but the combined stakes are being reported together.

Industry observers expect that over time the management of the funds overseen by the two industry players will evolve.

Australian media has reported that in that country the merged company controls 24 percent of the retail superannuation market, 19 percent of the retirement market and the same in retail funds.

In New Zealand the Takevoers Panel granted an earlier exemption to accommodate a combined stake in listed AMP Office Trust.