AIG announces sale of AIA Group shares in Hong Kong
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American International Group Inc. on Thursday said it has begun a sale in Hong Kong of up to $2 billion worth of ordinary shares of its former Asian operation AIA Group Ltd.
“AIG expects to use the net proceeds from the placing of AIA ordinary shares for general corporate purposes, which may include share repurchases or other capital management,” said AIG in a statement. “Immediately following the sale, AIA Aurora L.L.C., a wholly owned subsidiary of AIG, expects to transfer all of its remaining interest in AIA to its parent, AIG. “
AIG also said its board authorized the repurchase of up to $5 billion in AIG common stock from the U.S. Treasury Department. In its statement, however, AIG noted that there can be “no assurance that the U.S. Department of the Treasury will effect such an offering of common stock, or the amount of common stock, if any, that AIG may repurchase in connection therewith.”
The federal government provided more than $180 billion in assistance to AIG in 2008 after the insurer nearly collapsed. AIG now estimates that the Treasury investment in the company as of last month is less than $30 billion.
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