AMP and Axa SA today lifted their bid for Axa Asia Pacific Holdings (Axa APH) by 16%, adding another 54 cents a share to the cash component of the takeover offer and saying this is their final offer.

The revised offer is a response to the local independent directors’ decision on November 9 that the initial proposal “seriously undervalued” the company. 

The offer implies a value per share of $6.22, compared to $5.34 under the original offer. The share value price of Axa APH shares was $5.82 at the close of business on Friday.

Axa APH shareholders are now being offered a fixed cash component of $1.92 a share from a variable cash component of about $1.38. The offer of 0.6896 AMP shares is unchanged.

Paris-based Axa SA, which already owns 53% of Axa APH but is constrained by an agreement from operating in Asia on its own, values the Asian business under this offer at $9.63 billion. AMP wants to retain the Australian and NZ businesses, which are valued under this bid at $4.41 billion.

Axa APH Chairman Rick Allert said in a statement today that the independent board committee has been told the revised proposal “will lapse if binding transaction documents are not entered into prior to the close of business on December 21”.