The AIA Asian life-insurance unit of enfeebled insurance behemoth AIG will hit the Hong Kong stock exchange on Oct. 29, according to Reuters. The sale could result in a $15 billion capital raise for AIG. AIG had previously rejected a $30 billion offer from Prudential to buy the whole company, saying that the price was too low.
It’s unclear what portion of the company will remain in AIG’s hands, but the thinking is that the insurer will want to divest as much as it can. Reuters reports that AIG is ready to sell half of its AIA stake on the Hong Kong exchange.
As usual, the goal in all of this is for AIG to get rid of its more tangential businesses and raise money so it can pay back the billions it still owes Uncle Sam. The government has a roughly 80 percent stake in AIG, and during the financial crisis put together a bailout package for the company totaling $182 billion.