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AIG is selling stake in PICC Property and Casualty for up to $1 billion

Staff writer |
American International Group (AIG) is selling a stake in PICC Property and Casualty worth up to $1 billion to institutional investors through a block deal.

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The U.S. insurer acquired a stake in PICC Property and Casualty as a cornerstone investor in 2003, ahead of the Chinese insurer's flotation. The deal comes after AIG raised $500 million by selling down its PICC P&C stake in March.

The planned sale also comes as AIG faces pressure from billionaire activist investor Carl Icahn to split the company into three.

AIG is offering between 355 million and 365 million PICC P&C shares in a range of HK$16.08-HK$16.38 each, a term sheet of the deal showed. The basic offer is worth about $750 million, with a $250 million up-size option taking the total deal value to $1 billion, the terms showed.

The price range represents a discount of 4.3-6.1 percent to PICC Property's last traded price.

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