Subscribe free to our newsletters via your
. Space Travel News .

AIG raises $6.45 bn in final stake sale of insurer AIA
by Staff Writers
Hong Kong (AFP) Dec 18, 2012

Asian insurer AIA said Tuesday that US giant American International Group (AIG) had sold its remaining stake in the firm, raising $6.45 billion and completing an exit that started two years ago.

AIG offloaded its final 13.69 percent holding for HK$30.30 ($3.90) per share, AIA said in a statement, adding that it was one of Asia's biggest secondary placements.

"This latest divestment of the remaining holding is noteworthy in AIA's history since it marks the end of AIG's shareholder interest in AIA," AIA group chief executive Mark Tucker said.

However, AIA shares in Hong Kong plunged 3.32 percent from Friday's close to end at HK$30.60, although they are still above the price at which the US firm sold up. The stock was suspended Monday pending the sale announcement.

The benchmark Hang Seng Index closed flat.

AIG sold two-thirds of AIA in a US$20.5 billion initial public offering in Hong Kong in 2010 -- one of the world's biggest listings -- as it sought to repay a US$182 billion US government bailout during the financial crisis.

AIG sold further AIA shares twice this year, raising a total of $8 billion.

"We think this is positive news for AIA because it has removed the long term uncertainty" of AIG selling the stake, investment bank Core Pacific-Yamaichi analyst Timothy Li told AFP.

He said market's negative reaction was expected because the placement was made at a discount to AIA's close on Friday but he was confident the stock will rebound.

"For AIG, it lost an important vehicle in the Asian insurance market but it will help the firm to regain its financial strength," Li said, adding that he believes AIG will seek to tap the booming Asian market through other means.

AIG invested $500 million in the $3.1 billion initial public offering of China state-owned insurer PICC in Hong Kong earlier this month, while it will also set up a joint venture with the firm to sell insurance products in Chinese cities.

The US firm's move to fully exit AIA followed last week's US Treasury sale of all of its remaining shares in AIG for $7.6 billion, taking Washington's net profit on its 2008 bailout to $22.7 billion.

The Treasury continues to hold warrants to purchase 2.7 million AIG shares.

The bailout of what was once the world's largest insurer included equity and loans from the Treasury and Federal Reserve after the firm was swept into a liquidity crisis by its exposure to insurance on bad mortgage-backed securities.

At the time, it was feared AIG's collapse would spark a chain reaction throughout the global financial system.

But the rescue was deeply controversial, with critics saying the money put into AIG simply went toward paying off its counterparties, rather than having them take losses on their AIG-related investments.

In the past four years, AIG has been reduced in size by nearly half through restructuring and sales of some of its units.

On December 9, AIG announced it was selling up to 90 percent of its aircraft leasing firm ILFC to a group of Chinese investors, in a deal that values ILFC at $5.28 billion.


Related Links
Global Trade News

Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks DiggDigg RedditReddit GoogleGoogle

Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

China says more cities record home price rises
Shanghai (AFP) Dec 18, 2012
The cost of new homes increased in more Chinese cities in November than in the previous month, official figures showed Tuesday, despite efforts from the government to keep the market in check. Prices in 53 out of 70 cities tracked by the government rose month-on-month, the National Bureau of Statistics said in a statement, up from 35 cities in October and 31 cities in September. Prices o ... read more

Arctic town eyes future as Europe's gateway to space

ISRO planning 10 space missions in 2013

Russia works to fix satellite's off-target orbit

ULA Launch Monopoly to End

Curious About Life: Interview with Darby Dyer

Opportunity Checking Out Some Rocks At Matijevic Hill

Curiosity Rover Nearing Yellowknife Bay

Charitum Montes: a cratered winter wonderland

GRAIL Lunar Impact Site Named for Astronaut Sally Ride

NASA probes crash into the moon

No plans of sending an Indian on moon

Rocket Burn Sets Stage for Dynamic Moon Duos' Lunar Impact

Halfway Between Uranus and Neptune, New Horizons Cruises On

Dwarf planet Makemake lacks atmosphere

Keck Observations Bring Weather Of Uranus Into Sharp Focus

At Pluto, Moons and Debris May Be Hazardous to New Horizons Spacecraft During Flyby

Astronomers discover and 'weigh' infant solar system

Search for Life Suggests Solar Systems More Habitable than Ours

Do missing Jupiters mean massive comet belts?

Brown Dwarfs May Grow Rocky Planets

Hat Trick for X-37B

Fast20XX research project - ideas for travelling at hypersonic speed

US sends futuristic plane back into space

North Korea launches long-range rocket

Mr Xi in Space

China plans manned space launch in 2013: state media

China to launch manned spacecraft

Tiangong 1 Parked And Waiting As Shenzhou 10 Mission Prep Continues

China Makes First Asteroid Fly By

Asteroid Toutatis Slowly Tumbles by Earth

Big Asteroid Tumbles Harmlessly Past Earth

Student Team Provides Real-Time Video of Asteroid Toutatis

The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement