NU Online News Service, June 2, 4:08 p.m. EDT
American International Group Inc. in its latest divestiture move said today it has agreed to sell its consumer finance operations in Argentina to a bank and investment group.
Financial terms for the sale of Compa??a Financiera Argentina S.A. (CFA), Cobranzas y Servicios S.A. and AIG Universal Processing Center S.A. were not announced.
AIG said it was selling 100 percent of its shares in the units to Banco de Galicia y Buenos Aires S.A. and an investment group arranged by Grupo Pegasus.
The transaction is subject to certain conditions, including approvals by the Argentine Central Bank and the Argentine National Commission for the Defense of Competition.
AIG said CFA is a leading provider of personal loans in Argentina, with 93 branches nationwide, distribution agreements with approximately 3,900 retailers and approximately one million customers.
UBS Investment Bank acted as financial advisor and Kramer Levin Naftalis & Frankel served as legal counsel to AIG on this transaction.
AIG since it began selling assets to pay back billions in taxpayer bailout monies has announced between $5 billion and $6 billion in deals. It has also given the government a 79.9 percent interest in the company in exchange for lines of credit and Troubled Asset Relief Program money.
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