American International Group (AIG) is planning to raise more than $9bn by selling its stake in the MetLife via public offerings to accelerate the payments to the US Department of the Treasury, following revised agreement with MetLife.

The shares to be sold by AIG were obtained through the sale of its foreign life insurance business ALICO to MetLife.

In early November 2010, AIG completed the sale of ALICO, for total consideration of $16.2bn, comprising $7.2bn in cash and the remainder in MetLife securities.

The original terms of the sale between the AIG and MetLife, required AIG to hold the securities for prescribed minimum holding periods of at least nine months from the date of closing.

However, MetLife has waived some of the provisions of the earlier agreement, allowing AIG to go ahead with the sale of shares before the schedule.

Under the terms of the revised agreement, MetLife has agreed to allow AIG sell the common stock and equity units in underwritten public offerings.

AIG holds 78.2 million shares of MetLife common stock, MetLife preferred stock equivalent to 68.6 million shares of common stock, and MetLife equity units with a stated value of $3bn, which are ultimately convertible into at least 67.8 million shares of MetLife common stock.

AIG chairman Robert Miller said that AIG appreciate MetLife’s agreement to permit the proposed sales. As a result, AIG expects to take another major step forward.

"Seven weeks ago, we repaid the Federal Reserve Bank of New York in full. These sales, if completed, would put the government closer to recouping its investment in AIG," Miller said.