NU Online News Service, April 16, 10:58 a.m. EDT
American International Group, Inc. announced today that it has completed the sale of its AIG Private Bank Ltd. subsidiary, in a deal worth $308 million, to a subsidiary of Abu Dhabi-based Aabar Investments PJSC.
The announcement came in advance of AIG's announcement that it had sold its 21st Century Insurance auto unit to Zurich Financial for $1.9 billion(See related story on our Web site.)
AIG Chairman and Chief Executive Officer Edward Liddy acknowledged that in addition to the bank deal, "several other transactions are under discussion, and we continue to evaluate how best to assure the continued strength and success of all of AIG's businesses."
The bank deal, he said in a statement, is part of our plan for the orderly sale of certain assets to repay the loans from the U. S. government.
The faltering company has received more than $150 billion in taxpayer loans and government credit and has given the government a 79.9 percent interest in the company.
Under the terms of the bank sale agreement, Aabar, a global investment company, paid AIG approximately $253 million (U.S. dollars) for the entire share capital of AIG Private Bank, and purchased and assumed approximately $55 million (U.S. dollars) of intra-company loans outstanding to AIG Private Bank.
Mr. Liddy noted, "This is the fourth transaction we have closed in the past three weeks and it is one of 10 asset sale agreements we have reached in the past few months, despite a very challenging environment.
"Several other transactions are under discussion and we continue to evaluate how best to assure the continued strenghth and success of all of AIG"s businesses," he said.
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