(By Balachander) American International Group Inc. (NYSE: AIG) has priced the sale of roughly 1.65 billion shares of Asian life insurer AIA Group Ltd. between $3.83 (29.65 Hong Kong dollars) and $3.95 (30.65 Hong Kong dollars) each.
AIG said the exact price will be disclosed before the Hong Kong market opens on Tuesday.
The New York-based insurer plans to use net proceeds from the sale, which may result in AIG raising as much as $6.5 billion, for general corporate purposes.
On Sunday, AIG said it has commenced a sale in Hong Kong of up to all of its ordinary shares of AIA by means of a placing to certain institutional investors.
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In September, AIG raised roughly $2 billion from a sale of part of its stake in AIA.
Last week, the U.S. Department of the Treasury has priced an offering of roughly 234.2 million shares of AIG at $32.50 each. Treasury will have sold the last of its remaining shares of AIG, receiving proceeds of around $7.6 billion from the sale.
With this sale, Treasury said the overall positive return on the Federal Reserve and Treasury's combined $182 billion commitment to stabilize AIG during the financial crisis is now $22.7 billion.
To date, giving effect to the offering, Treasury has realized a positive return of $5.0 billion and the Federal Reserve has realized a positive return of $17.7 billion.
Treasury's $20.7 billion AIG common stock offering in September 2012 alone represented the largest single U.S. common stock offering in history.
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Since September 2008, America committed a total of $182.3 billion in connection with stabilizing AIG during the financial crisis. Since then, through asset sales and other actions by AIG, America has not only recovered all $182.3 billion but also earned a combined positive return of $22.7 billion.
On Monday, AIG shares added 2.83 percent to trade at $34.90. Over the past year, the stock has been trading between $22.19 and $37.67.