NU Online News Service, June 29, 3:16 p.m. EDT
In its latest divestiture move, American International Group Inc. announced today that it has agreed to sell 98 percent of the shares in its consumer finance operations in Russia to Banque PSA Finance SA.
AIG, which did not give a price, said the sale consisted of OOO AIG Bank (RUS), with an option, not exercisable until mid-March 2011, for the sale of the remaining 2 percent.
Banque PSA is a 100 percent-owned subsidiary of PSA Peugeot Citro?n Group. The transaction is subject to the satisfaction of certain conditions, including approval by the Central Bank of Russia.
AIG said OOO AIG Bank (RUS) was established in June 2008 and currently employs a dozen employees.
Banque PSA Finance provides financing for sales of Peugeot and Citro?n cars and light commercial vehicles in 24 countries. It offers retail and fleet customers a range of financing solutions and related services, and provides Peugeot and Citro?n dealers with financing for new and used vehicles and replacement parts inventories.
Deutsche Bank acted as financial advisor and Debevoise & Plimpton served as legal counsel to AIG on this transaction. CMS in Russia served as legal counsel to Banque PSA Finance.
Last week debt-riddled AIG said it had agreed to have $25 billion of its government debt reduced with an agreement with the Federal Reserve Bank of New York to give taxpayers a stake in two international life insurance franchises.
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