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AIG Divests Asset Management Stake to Hong Kong Firm
American International Group has finalised the sale of
Pinebridge Investments to Asia-based investment firm
Pacific Century Group.
The deal, valued at $277 million in cash, is expected to help AIG
pay off its remaining $129.3 billion bailout debt with the US
government and bring it down to around $78 billion, the company
said.
Also covered under the agreement are the option to claim
additional payments based on performance and a continuing share
of carried interest. Pinebridge, based in New York, covers 31
countries with more than 900 employees and about $87.3 billion
worth of assets under management.
"Pinebridge's extensive network in Asia complements our existing
global reach, and their strong financial position benefits our
future plans for growth," said
Win J Neuger, the chief executive of Pinebridge.
The divested business's management team will keep its position
after the sale. Pacific Century Group is run by
Richard Li, a prominent businessman in Hong Kong and son of
one of Asia's richest individuals,
Li Ka-shing.