Asia Economy

AIG to Raise Up to $6.5 Billion Through AIA Share Sale: Report


American International Group (AIG) may raise up to $6.5 billion through the saleof its remaining stake in Asian insurer AIA, a source said onMonday, marking AIG's total exit from a company it has held astake in for nearly 100 years.

The source, who has direct knowledge of the matter, toldReuters that AIG would sell the 13.69 percent, or 1.65 billionblock of shares, in the range of HK$29.65-HK$30.65 per share.AIA's stock closed at HK$31.65 on Friday.

The source declined to be identified as the price range wasnot yet public.

AIG expects to use the net proceeds from the AIAsale for general corporate purposes. AIG said earlier on Mondaythat it had commenced a sale of its AIA shares in Hong Kong byplacing them to certain institutional investors. The company didnot disclose the buyers or the price.

After selling $2.02 billion in AIA shares in September, AIGwas barred from selling any further shares until Dec. 10.

AIA, Asia's third-largest insurer, was spun out of AIG inOctober 2010, with AIG Chief Executive Robert Benmoscheoverseeing the company's listing in Hong Kong after a failedtakeover offer from Prudential.

AIA has built a sprawling and successful business across theregion, with an army of hundreds of thousands of agentscompeting head-to-head with Prudential in several countries.

AIA moved to split off from AIG after the U.S. companynearly collapsed in the wake of the 2008 financial crisis,prompting a U.S. government bailout of $182 billion.