Two Japanese subsidiaries of AIG sold to Prudential Financial
AIG takes a new step in its divestment strategy. The U.S. insurer announced Thursday it has signed an agreement with another American financial services company, Prudential Financial Inc.. Under this agreement, AIG sells two subsidiaries to Prudential Financial of Japan, namely AIG Star Life Insurance Co. and AIG Edison Life Insurance Company, detailed the group in a statement.
The amount of the transaction, expected to close in the first quarter of 2011, represents 4.8 billion dollars (3.5 billion euros), of which 4.2 billion will be paid in cash, says U.S. insurer . "Subsidiaries AIG Star and AIG Edison had an important role in the AIG family.Their strength and potential have generated great interest in the financial markets and, given our obligations to the U.S. government, AIG had to consider each offer carefully, "said Robert Benmosche, the CEO of AIG, quoted in statement.
Objective: To reimburse the U.S. government
So on the brink of insolvency, AIG was bailed out by mid-September 2008 the U.S. government, which had to inject $ 182.3 billion in its coffers to keep the group afloat. The U.S. government now owns 80% of AIG. "The sale of [these two Japanese subsidiaries] marks a new step in the program AIG to reimburse money to American taxpayers and an important step to achieve a complete withdrawal of government support," the group said.
A withdrawal also seriously considered by Washington.The U.S. Treasury, which holds 49 billion in AIG shares, would be about to announce the sale of its securities. The idea would be put on the market during the first half of 2011, Bloomberg reported Monday.
Option Exchange for AIA
The sale of AIG Star Life Insurance and AIG Edison Life Insurance comes after the failure last June, sales of AIA, AIG's Asian arm, Prudential PLC, the British insurer (which has no relationship with the U.S. group Prudential Financial). The negotiations, which lasted several weeks, eventually foundered on the issue price of AIA. AIG is now planning to introduce its Asian life insurance on the Stock Exchange of Hong Kong, October 29, and hopes to raise about $ 15 billion (11.5 billion euros), revealed sources close to the record last week.
In March, another major assignment had ended.AIG was then sold to MetLife's life insurance industry Alico for the equivalent of $ 15.5 billion, including $ 6.8 billion in cash and approximately 8.7 billion shares in MetLife.
Action AIG closed at 37.45 dollars Wednesday at the New York Stock Exchange, up slightly from 0.35%.
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