NU Online News Service, Aug. 12, 3:15 p.m. EDT
American International Group Inc. said it has an agreement to sell AIG Finance (Hong Kong) Limited to China Construction Bank Asia for $70 million in cash.
The company said the sale of 100 percent of its shares is subject to typical closing adjustments, plus the repayment of intra-group indebtedness and deposits of approximately $557 million.
The transaction's conditions include approvals by appropriate regulatory authorities.
AIG Finance is a leading issuer of credit cards in Hong Kong, operating as a restricted license bank that offers a variety of financial products and services. As of June 30, the company had more than 500,000 customers as well as total net loan receivables of HK$4.8 billion and a retail deposits balance of HK$1 billion.
Deutsche Bank acted as financial advisor to AIG in the transaction.
Among other asset sales in Asia, AIG in February announced it was selling two Bangkok, Thailand units--AIG Retail Bank Public Company Ltd. and AIG Card Company Limited--for U.S. $58.7 million (2.055 billion Baht) to Thailand's Bank of Ayudhya Public Company Ltd. (BAY).
The AIG Finance transaction is the latest AIG sale as the financially troubled company divests itself of assets to pay off billions in government loans it has needed to stay afloat.