New York, NY, United States (4E) – American International Group (AIG) has sold the remaining stake the U.S. insurance giant still holds in Hong Kong insurer AIA, ending years of long partnership.
AIG, which has repaid the U.S. federal government for the bailout money it received, raised HK$50bn ($6.45bn) from the transaction, pricing at HK$30.30 per share.
The company has divested its remaining 13.7 per cent holding in AIA after selling most of its shares after the government rescued it following the 2008 financial crisis.
In 2010, AIG sold the majority of it shares in AIA through an initial public offering as the New York-based company raised cash to repay its debt with the U.S. government that reached up to $182.3bn.
AIG’s sale of its stake in the Hong Kong-based life insurer brings the total amount it has raised in four offerings to $35bn. In a statement released Tuesday, the sale is set to be completed on Dec. 20.
AIG CEO Robert Benmosche has spearheaded the selling of more than $65bn worth of assets, which included AIA, an U.S.-based consumer lender and its Asian headquarters.
The move aimed to scale back AIG operations, which at one time was the world’s biggest insurer. Benmosche sought to bring the company’s focus on global property-casualty coverage and U.S. life insurance markets.
The company got into financial difficulties during the financial crisis when it covered financial firms against derivative contracts including credit default swaps.