AIG Divestitures Pass $65 Billion With Plane Leasing Sale
American International Group Inc. (AIG) has disclosed agreements to divest assets for more than $65 billion since the U.S. government rescued the insurer in 2008.
In the latest deal, AIG yesterday agreed to sell 80 percent of its International Lease Finance Corp. to a group of Chinese investors for $4.23 billion.
AIG, led by Chief Executive Officer Robert Benmosche, has used proceeds to pay down debts on a Federal Reserve credit line and repurchase shares from the U.S., helping the government recoup the insurer’s $182.3 billion bailout with a profit. The insurer, once the world’s largest, had about 57,000 employees at the end of 2011, less than half as many as three years earlier.
The following table lists AIG’s divestitures and the dates they were announced.
Date Unit Buyer Price($m) 9/29/08 London Airport stake Credit Suisse n/a 11/26/08 Stake in Brazil venture Unibanco 820 12/1/08 Private Bank Aabar 308* 12/19/08 German insurance unit Augur Capital 26 12/22/08 Hartford Steam Munich Re 818* 1/13/09 Canadian life units Bank of Montreal (BMO) 263 1/19/09 Commodity index unit UBS AG 15** 1/23/09 Philippines units East-West Banking 49 2/5/09 Thai units Bank of Ayudhya 45 3/26/09 Taiwan securities unit Bank of E. Asia n/a 4/16/09 21st Century Insurance Zurich Financial 2,000* 5/11/09 Japan headquarters Nippon Life 1,200 6/2/09 Argentine finance unit Banco de Galicia 69 6/4/09 Transatlantic Holdings public offering 1,136+ 6/9/09 New York headquarters Kumho n/a 6/19/09 ForEx platform BNP Paribas n/a 6/24/09 Mexican finance Afirme, Consorcio n/a 6/29/09 Russian bank Banque PSA n/a 6/30/09 Taiwan credit-card unit Far Eastern n/a 7/28/09 Life insurance finance Wintrust 680^ 7/29/09 Polish consumer finance Banco Santander n/a 8/11/09 Energy assets multiple buyers 1,900^^ 8/12/09 Hong Kong finance China Construct. 70 8/12/09 India information tech. Mphasis n/a 9/5/09 AIG Investments Pacific Century 500 12/23/09 Israeli mortgage insurer Harel Insurance 36 1/5/10 Canada mortgage insurer Ontario Teachers n/a 3/8/10 Alico MetLife 16,400 3/9/10 Transatlantic Holdings public offering 452~ 4/13/10 53 ILFC planes Macquarie Group 1,987 8/11/10 American General Finance Fortress 125 9/30/10 Star, Edison Pru. Financial 4,800* 10/22/10 AIA Group Ltd. (1299) public offering 20,500+ 1/12/11 Nan Shan Life Ruen Chen 2,160 4/18/11 Railroad leasing Perella Weinberg n/a 7/7/11 New Jersey apartments multiple buyers 242 3/6/12 AIA Group Ltd. share sale 6,000~ 6/26/12 Two runoff units White Mountains 35 9/6/12 AIA Group Ltd. share sale 2,000~ 12/10/12 Aircraft leasing unit China investors 4,230#
Notes: Some company names have been abbreviated for space. Not all deals have been completed.
*Includes assumed debt.
**Excludes potential $135 million payment based on future performance.
+Includes sale of additional shares later in the month.
~AIG divested in multiple offerings.
^Excludes potential purchase of assets for $61.2 million.
^^Includes previously disclosed deals such as Spanish solar plants to HG Capital, interests in oil and gas contracts to an undisclosed buyer and stakes in gas storage and marketing ventures to Tenaska.
#Excludes option to buy an additional 10% stake.
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