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AIG (AIG) Announces Pricing Range Of Sale Of AIA Shares

 December 17, 2012 02:24 PM

(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.

[Related -American International Group Inc (AIG): Current Weakness Offers A Buying Opportunity]

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.

[Related -American International Group Inc (AIG): Buy This 'Hated' Company While It's Still An Incredible Bargain]

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.

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