US insurer American International Group (AIG) has launched a sale proceed in Hong Kong to offload $2bn worth of ordinary shares of AIA by placing it to certain institutional investors.
The fund raised by the sale of the proposed shares will be utilized for general corporate purposes, which may include share repurchases or other capital management, said the US insurer.
After the completion of the sale, AIA Aurora, a wholly-owned subsidiary of AIG, anticipates to transfer all of its remaining interest in AIA to its parent, AIG.
In another move, AIG’s board of directors has authorized the repurchase of shares of AIG’s Common Stock, par value $2.50 per share, in an cumulative amount of up to $5bn.
According to the underwriter, this authorization substitutes all prior common stock repurchase authorizations and is limited to repurchases from the US Department of the Treasury.
AIG trades in over 130 geographies, and offers property-casualty insurance products to commercial, institutional, and individual customers, in addition to providing insurance and retirement services in the US.