NU Online News Service, March 6, 2:17 p.m.EST
|American International Group says it completed the sale of 14percent of the stock of its Hong Kong life insurer, AIA Group,Ltd., at the projected price of approximately $6 billion.
|AIG says the transaction will close Thursday, and that itreceived a price of HK$27.15, or $3.50, each for the shares.
|The sale leaves AIG holding 18.6 percent of the stock of AIA,regarded as one of its trophy holdings before it got into financialtrouble in 2008 and sought a government bailout.
|In its release, AIG says that it is restricted from selling theremaining 19 percent of AIA that it still owns until Sept. 4.
|AIG says it sold 1.72 billion shares—slightly more than theplanned 1.7 billion—at the bottom of its indicative price range.That price represents a 7 percent discount to Friday's closingprice on the Hong Kong market.
|The shares are held in a special facility for the benefit of theU.S. government, which will get the proceeds from the sale.
|The facility is a special purpose vehicle created by AIG and theU.S. Treasury to hold the AIA shares in return for cash from thegovernment.
|The original special vehicle involving AIA totaled $25 billion,and included ALICO, since sold to MetLife. The AIA share was $16billion; the ALICO share $9 billion.
|The ALICO portion was paid off as part of the effort to closethe Federal Reserve Board's loans to AIG.
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