US Treasury to sell remaining shares of AIG for $7.6 billion

US Government has made $22.7 billion profit on its $182 billion bailout

The US Department of the Treasury has agreed to sell all of its remaining shares of American International Group, Inc. (AIG) for $7.6 billion, marking an end to the government’s financial support of the insurance company.

The Treasury will sell its remaining 234.2 million shares at $32.50 per share in an underwritten public offering, according to an AIG press release. The Treasury will receive $7.6 billion in proceeds from the sale, which is expected to close Friday.

Read: AIG rebrands again

Overall, the US government has made a $22.7 billion profit on the $182 billion it provided AIG during the economic crisis.

The government bailout was one of the largest of the financial crisis.

After the closing of the offering, the Treasury will continue to hold warrants to purchase approximately 2.7 million shares of AIG common stock – the sale of which is expected to provide an additional positive return to taxpayers, states the AIG release.

Read: What the AIG name change means to your clients

“We are very pleased to repay 100% of all that America invested in AIG plus a total combined positive return – or profit – of $22.7 billion,” said AIG president and chief executive officer Robert H. Benmosche in a statement.

BofA Merrill Lynch, Citigroup, Deutsche Bank Securities Inc., Goldman, Sachs & Co. and J.P. Morgan Securities LLC have been retained as joint bookrunners for the offering.

Copyright © 2018 Transcontinental Media G.P.
Transcontinental Media G.P.