AIG to sell finance operations in Argentina
American International Group Inc. today agreed to sell 100% of its shares in its consumer-finance operations in Argentina to an Argentine bank and an investment group.
American International Group Inc. today agreed to sell 100% of its shares in its consumer-finance operations in Argentina to an Argentine bank and an investment group.
The announcement is the latest move by the U.S. insurer to shed assets to repay a government loan package worth $180 billion.
Financial terms of the sale to Banco de Galicia y Buenos Aires SA and an investment group arranged by Grupo Pegasus were not disclosed.
The AIG consumer-finance operations included in the sale are Compania Financiera Argentina SA, a provider of personal loans in Argentina; Cobranzas y Servicios SA; and AIG Universal Processing Center SA.
The sale is subject to conditions including approvals by the Argentine Central Bank and Argentine antitrust regulators.
UBS Investment Bank acted as financial adviser in the transaction, and Kramer Levin Naftalis & Frankel served as legal counsel to AIG.
The New York-based insurer is selling assets and spinning off some subsidiaries as it looks to raise new cash to repay government loans while becoming a smaller, more-efficient company.
AIG was saved from the brink of collapse in September when the government provided it with an initial $85 billion lifeline. Including the initial loan, AIG has received four rounds of government support to help it remain in business amid fears that a full collapse of the insurer would create widespread devastation in the financial markets.
Shares of AIG fell 3 cents to $1.63 in morning trading. The stock has traded in a 52-week range of 33 cents to $36.77.
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