AIG to Sell Remaining Stake in Asian Insurer
Dec 17th 2012 8:00AM
American International Group Inc. (NYSE: AIG) will sell its stake in Asian life insurance company AIA Group Ltd. in a block sale that is expected to occur tomorrow. AIG turned down an offer of $30.5 billion for the company back in 2010, and so far has held an IPO, which raised about $18 billion for AIG and has sold another portion of its stake earlier this year for about $8 billion.
The sale of AIG's remaining stake is expected to raise about $6.5 billion, even at a sale price that is discounted 3.2% to 6.3% from Friday's closing price. The U.S. Treasury just sold its last stake in the U.S. insurer and U.S. taxpayers no longer own a piece of AIG. In fact, taxpayers could finish more than $22 billion ahead on the bailout package of $180 billion that they advanced to AIG following the financial crisis of 2008.
AIG's shares are up 1.9% in premarket trading this morning, at $34.59 in a 52-week range of $22.19 to $37.67.
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