NU Online News Service, March 10, 2:53 p.m. EST
American International Group Inc. in its latest asset sale activity said the shares of reinsurer Transatlantic Holdings it is disposing of have been priced at $53.35 per share.
AIG last summer began selling off its interest in Transatlantic held by its American Home Assurance Co. (AHAC) subsidiary, and the latest transaction involves a 14 percent stake consisting of 9.2 million shares.
The company, which was rescued from the brink of bankruptcy when the government extended billions of dollars in credit and took a 79.9 percent interest in the conglomerate, has been steadily selling off holdings to pay off its debt.
In the fourth quarter AIG's reported debt to the Treasury and the Federal Reserve Bank of New York was nearly $130 billion.
AIG agreed on Monday to sell American Life Insurance Company to MetLife in a $15.5 billion cash and stock deal, and March 1 it announced arrangements to sell American International Assurance Group Ltd. to Prudential Plc in London.
On Friday Transatlantic said it would purchase up to two million shares of its stock from AHAC at the agreed price of $52.52.
In addition to 8,466,693 shares of Transatlantic that were priced today, AIG said that Goldman, Sachs & Co., Wells Fargo Securities and BofA Merrill Lynch, the underwriters of the offering, have a 30-day option to purchase up to an additional 725,969 shares of TRH common stock from AHAC.
Excluding any Transatlantic purchase, if 7,192,662 shares were to sell at the $53.35 price it would amount to $383,728,517.
© 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.