Days after the U.S. sold its common shares in American International Group (AIG), the bailed out insurer revealed plans over the weekend to begin to sell its remaining stake in Asian life insurer AIA in a deal that could raise about $6.5 billion.
Shares of New York-based AIG rallied almost 1% on the announcement.
In a statement on Sunday, AIG said it has started a sale in Hong Kong of up to all of its ordinary shares of AIA Group. The company’s stake before this sale stood at 13.69%.
The insurance giant didn’t give a price tag on the transaction, but The Wall Street Journal reported the transaction could be worth as much as $6.53 billion.
AIG said it plans to use the net proceeds for “general corporate purposes.”
In an effort to raise cash to pay back the U.S. for a $182 billion bailout, AIG sold about two-thirds of AIA in October 2010 through an initial public offering in Hong Kong that raised $20.5 billion.
AIG also raised about $8 billion earlier this year by further paring its stake in AIA via stock sales in March and then September.
Last week the Treasury Department announced it had sold its entire portfolio of AIG common shares, though the U.S. still owns warrants to buy stock in the company.
AIG’s shares ticked up 0.94% to $34.26 in recent action on Monday, leaving them up about 47% so far this year.