AIG to raise around $6.5-bn via stake sale in AIA Group Ltd
17 December 2012
American International Group Inc may raise as much as $6.5 billion from the sale of its remaining stake in AIA Group Ltd in Asia's second-largest block sale ever, exiting a nearly century old business.
The sale ends an era for AIG in Asia and its chief executive Robert Benmosche, under whom AIA went public in Hong Kong, with the world's third-biggest initial public offering two years ago.
The insurer was forced to sell parts of its massive business, including AIA, after the US government bailed the company out in 2008 as it verged on collapse in the wake of the financial meltdown. The government bailed it out for $182 billion.
AIG is offering its 13.69 per cent stake in AIA or 1.65 billion shares, in a range of HK$29.65-HK$30.65 apiece, Down Jones quoted sources with direct knowledge of the plan as saying.
That is a discount of up to 6.3 per cent to AIA's close at HK$31.65 in Hong Kong on Friday, according to the sources. The sources requested anonymity as the terms of the offering were not yet public.
AIA shares have soared about 61 per cent since the $20.5 billion IPO in 2010, and have emerged a top choice of fund managers looking to benefit from Asia's growing wealth and booming demand for insurance and other financial products.