AIG to sell $1.25bn stake in PICC P&C

American International Group (AIG) is set to sell its shares in PICC Property and Casualty Company (PICC P&C).

The insurance firm has priced the sale of 740 million ordinary H shares of PICC P&C by means of a placing to institutional investors.

Upon the closing of the placing, which is scheduled for May 5, 2016, AIG will receive gross proceeds of approximately $1.25 billion, based upon a purchase price of HK$13.08 (approximately US$1.69) per share. Thereafter, AIG will hold a position of approximately 111 million shares, representing 0.75 percent of the total issued share capital of PICC P&C.

The ordinary H shares have not been and will not be registered under the Securities Act of 1933, as amended (the Securities Act), or any other applicable law, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any other applicable law.

“We’re transforming AIG into a leaner, more profitable and focused insurer,” said Peter Hancock, president and chief executive officer of AIG. “By continuing to de-risk our position in PICC P&C, we are enhancing our financial flexibility. We continue to greatly value our strategic partnership with PICC P&C.”