Paris-based French multinational insurer, AXA, had issued a statement on Friday, the 8th of November 2019, saying that the French Insurer was expecting to bank a net proceeds of $3.1 billion from a sell-off of its 29 per cent stake in the NY-based AXA Equitable Holdings, as the French company was looking to shut down its life insurance business in the United States, which became a majority stakeholder of the US-based insurer Equitable back in the 1991s.
In point of fact, the second-largest insurer in the Europe, AXA behind Germany’s Allianz, had been divesting stakes from its US insurance business, Equitable, over the recent months in a bid to raise enough funds to pay off a $15 billion havoc-scale acquisition of Bermuda-based arch-rival XL it had made last year.
Meanwhile, in its Friday’s (November 8th) statement, AXA was quoted saying that the company had already sold off 144 million shares of the Equitable at a price of $21.80 a share to the leading US lender Goldman Sachs, while the Equitable had also agreed to repurchase roughly 24 million shares at a same price.
Besides, following AXA Friday’s (November 8th) announcement, an executive of AXA had also added that proceeds from its recent divestment deal would not impact its net earnings’. Nonetheless, following the deal, the French insurer would only retain a 9.6 per cent stake of the Equitable that would be required to redeem an AXA bond scheduled to be matured by May 2021 which later has to be converted into the Equitable shares.