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March 16, 2010
Share ThisYesterday, American International Group Inc. (AIG) announced that it has raised $452 million from its stake sale in the reinsurance company Transatlantic Holdings Inc. (TRH).
AIG closed the secondary public offering of 8,466,693 shares of Transatlantic common stock owned by American Home Assurance Co. (AHAC), a subsidiary of AIG. The offering was priced at $53.35 each, generating gross proceeds of approximately $452 million. Of the total offering, Transatlantic bought 2 million shares.
The underwriters of the offering include Goldman Sachs Group Inc. (GS), Wells Fargo Securities of Wells Fargo & Co. (WFC) and BofA Merrill Lynch, a part of Bank of America (BAC). They have a 30-day option, exercisable until Apr 8, 2010, to purchase up to an additional 725,969 shares of Transatlantic common stock from AHAC.
Also, AIG raised over a billion from selling a part of its Transatlantic stake last year. AIG, which received federal support worth $182.5 billion, has been trying for the past several quarters to sell assets and streamline its operations in an effort to repay the bailout money.
The company has already fetched two deals in March. It will sell its American Life Insurance Co. unit for about $15.5 billion to MetLife Inc. (MET). The company has also announced the sale of its Asian life-insurance unit, American International Assurance to the U.K.’s Prudential Plc. (PUK) for about $35.5 billion.
Reflecting positive sentiments over the company, the shares of AIG increased 9 cents or 0.26% to $34.32 in Monday’s regular session on the New York Stock Exchange. The shares were further up 10 cents or 0.29% in the after-market session.
Read the full analyst report on "AIG"
Read the full analyst report on "TRH"
Read the full analyst report on "GS"
Read the full analyst report on "WFC"
Read the full analyst report on "BAC"
Read the full analyst report on "MET"
Read the full analyst report on "PUK"
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