AIG has been selling off assets to pay off $150 billion in taxpayer supported loans that it secured to keep the company liquid after massive losses sustained by the conglomerate's Financial Products business.
In September the company announced the sale of AIG-Financial Products' 50 percent interest in London City Airport to Stamford, Conn.-based Global Infrastructure Partners of New York and London for an undisclosed amount. Some reports said the price may have been as high as $750 million.
AIG Private Bank provides banking and structured wealth management solutions to private and institutional clients. It is based in Zurich and has branches, representative offices and wealth management affiliates in Hong Kong, Singapore, Shanghai and Dubai. It was founded in 1965.
According to AIG, under its new ownership, AIG Private Bank will become an independent financial institution. It will remain headquartered in Switzerland and will continue to focus on providing wealth management services to high-net-worth individuals in Switzerland, Western and Eastern Europe, Asia and the Middle East, but it will conduct its business under a new name.
H.E. Khadem Al Qubaisi, chairman of Aabar and future designated chairman of the bank, said, "We have looked very thoroughly at AIG Private Bank and are impressed by the professionalism and dedication of the management team and staff."
He said the transaction represents "a great opportunity to leverage AIG Private Bank's expertise in wealth management and to further develop it in our region. AIG Private Bank provides us with a platform with the potential for significant long-term growth and value creation."
Eduardo Leemann, chief executive officer of AIG Private Bank, said, "We are proud and delighted that we have found a strong and internationally renowned investor such as Aabar to support the future development of our bank.
"This sends a clear message to our customers that we will continue to be a trustworthy, reliable and competent partner for them. It also offers us new opportunities to expand our operations, especially in the Middle East."
AIG reported that Mr. Leemann and his senior management team will remain with the bank.
AIG said it received financial advice from Blackstone Advisory Services in connection with AIG's global restructuring program. UBS Investment Bank acted as financial advisor and Lenz & Staehelin served as legal counsel to AIG on this transaction.
The transaction is subject to certain conditions, including approvals by appropriate regulatory authorities.
This article updated 2:07 p.m.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.