AIG Sells its Stake in AIA to Repay US Government

American International Group Inc is planning to raise $6 billion to repay the US government. AIG availed the bailout package of $182 billion after 2008 financial crisis to prevent its financial collapse. The amount received was the biggest in the US govt bailout package. Now the New York Based, insurance giant has decided to sell a substantial portion of its holding in AIA.

AIG is selling 1.72 billion shares from its stake in AIA which turns out to be 33 percent of its total holding in the Hong Kong listed company. The shares will be sold to institutional investors and the proceeds generated will be used to repay the government debt according to the AIG.

AIG also used AIA back in 2010 to repay its outstanding liability to US government and offered AIA’s initial public offering which generated $20 billion. This was also the biggest ever initial public offering in Hong Kong’s history.

The company has been very consistent in repaying its obligations to the US government and as on December 31st, 2011 the remaining outstanding US Govt. obligation balance stood at $50 billion. The US Govt. still hold 76 percent of AIG’s outstanding shares.

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Alan Smalling

About Alan Smalling

Alan is the latest addition to our news and development team. He has worked with Pete previously on other financial websites. When we can keep him at low altitude, his contributions will mainly be focused on company news and new product launches.

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