AIG Divests Asset Management Stake to Hong Kong Firm

Vanessa Doctor

1 April 2010

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.