AIG launches sale stake in former Asian unit AIA
American International Group Inc launched the sale of a stake in its former Asian unit AIA recently, providing the insurer with funding to help repurchase up to $5 billion of its stock from the US government.
While no other details have been announced by US Treasury about another share sale, its latest lockup expired early this month, meaning an offering would potentially bring the government’s investment below 50%, the reports added.
AIG’s sale of up to $2 billion of AIA Group Ltd shares comes two days after a lock-up period on such a sale expired, but is only about a quarter of the $7.6 billion stake the US insurer owned and could have sold. AIG sold $6 billion worth of AIA shares in March.
AIA was formed out of its parent company in October 2010, when AIG oversaw the company’s listing in Hong Kong after a failed takeover offer from Prudential Plc.
Since the listing, AIA’s shares have zoomed about 34% and become a top choice of fund managers looking to benefit from growing wealth in Asia and booming demand for insurance and other financial products.
AIA has built successful business across the region, with hundreds of thousands of agents. In July it reported better-than-expected first-half results, with net profit climbing 10% to $1.44 billion.
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