American Int'l Group (AIG) May Get $6.5B in AIA Stake Sale

December 17, 2012 8:10 AM EST
American International Group (NYSE: AIG) is ticking higher in early trading following an announcement earlier that the company plans to sell shares of its AIA unit.

Value on the sale is expected to be about HK$50.6 billion, or $6.5 billion. Bloomberg says data from AIG's term sheet has the insurer selling 1.65 billion shares with an upper price limit at HK$30.65 per share.

AIG currently holds a 13.7 percent stake in AIA.. In a release today, AIA said it requested a "halt in trading in the shares of the Company on The Stock Exchange of Hong Kong Limited will be suspended with effect from 9:00 a.m. on 17 December 2012 pending the release of an announcement which may be price sensitive in nature. If the Placing proceeds, AIG expects the pricing of the Placing to occur on 17 or 18 December 2012. It is the Company’s expectation that trading in the Company’s shares will resume no later than 18 December 2012."

Based on market data, AIA shares are being offered at a 6.3 percent discount to last Friday's closing price of HK$31.65.

In early trading, AIG is up 1.8 percent Monday.

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