AXA National Mutual Holdings does not expect resistance from minority shareholders over a plan to privatise locally listed AXA China Region. Tony Killen, managing director of AXA National, Australia's third-biggest insurer by market value, said the cash offer of $7 a share was a 'fair and full price', as the stock had been trading at a 48 per cent discount to the Hang Seng Index since the beginning of the year. 'Even if someone had a target price of $7 in the future, that is a future price as opposed to cash now,' Mr Killen said. However, Mark Mobius, president of Templeton Emerging Markets Fund whose United States arm is a stakeholder, said minority shareholders had been left with no option but to accept the offer. 'If we saw the company as long-term value, then we wouldn't be happy about it,' he said. The $4.1 billion offer values the company at $15.21 billion and represents a 37 per cent premium over the company's closing price of $5.10 on September 30. One analyst said $7 represented a good deal for shareholders. He expected the company's share price to shoot up close to the offer price before finalisation of the deal on December 5. Mr Killen said there were signs Hong Kong's economy was emerging from its recession but the insurance industry was still suffering and AXA's local sales were down on last year. 'Our business tends to lag the performance of the economy and if that phenomenon continues here, we may have difficult trading conditions for some time yet,' he said. According to Mr Killen, the company remained profitable but it was a question of when it would return to optimum performance. Mr Killen said the company's SAR listing in 1992 had been to assist the development of the business at that time but said it was time to focus on operating the company without the complexity and cost of it being a standalone public company.