AXA receives $1.8bn from US life unit stake sale

AXA has completed a secondary common stock offering of its US life and asset management business Equitable Holdings (EQH) for net proceeds of $1.8 billion.

AXA listed its life subsidiary on the New York Stock Exchange in May 2018. AXA Equitable Holdings comprises AXA Equitable Life Insurance Company and AllianceBernstein. The proceeds from the initial public offering (IPO) amounted to $4.0 billion, securing the financing for the acquisition of the XL Group.

Following the recent divestment, AXA’s ownership in EQH has decreased from 72.2 percent to 59.3 percent. In addition, AXA has granted the underwriters a 30-day option to purchase additional shares which could result in delivering another $0.2 billion.

“AXA continues its transformation journey with the successful new placement of EQH shares, representing another step in shifting AXA’s business profile towards our strategic preferred segments and additional financial flexibility for the Group,” said AXA CEO Thomas Buberl.

“AXA Equitable Holdings has been delivering strong operating performance since the IPO 6 months ago, and I wish them continued success as a leading US-listed financial services company,” Buberl added.

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