(Reuters) - AIG said it would accelerate plans to separate its Asian subsidiary through an initial public offering as the bailed-out U.S. insurer seeks to raise cash and list the unit as soon as possible.
The offering could raise at least $4 billion based on targets set by AIG executives, making it one of the largest Hong Kong IPOs to hit the market in the last two years.
The IPO would allow AIG to raise money to pay back the U.S. government and allow the profitable Asia life insurance subsidiary, American International Assurance Co Ltd (AIA), to break from its ailing parent.
AIG said it has asked for requests for proposal to select global coordinators and bookrunners for the IPO, confirming a Reuters report last Thursday that the company was about to start the process.
The lead manager of the IPO will be The Blackstone Group (BX.N), AIG's global financial adviser for its restructuring.
Hong Kong-based AIA has more than $60 billion of assets under management. During 2008, AIA said it recruited more than 52,000 agents, bumping its representation up to about 250,000 agents, and it has about 20,000 employees across 13 Asian markets.
It's known as AIG's Asia crown jewel, providing coverage to about 20 million customers, or close to a third of AIG's total customer base.
Still, analysts say that even with bright prospects, the IPO faces plenty of obstacles. AIG itself said the offering depends on market conditions and regulatory approvals.
Read more here
Sunday, May 17, 2009
Subscribe to:
Posts (Atom)