Press release from Business Wire
AIG Announces the U.S. Department of the Treasury Completes Offering of AIG Common Stock
Thursday, May 10, 2012
NEW YORK (Business Wire) -- American International Group, Inc. (NYSE: AIG) announced today the completion of a registered public offering of 188,524,589 shares (including 24,590,163 shares sold pursuant to the exercise in full of the underwriters' over-allotment option) of AIG common stock, par value $2.50 per share, by the U.S. Department of the Treasury (“Treasury”) as the selling shareholder. AIG purchased 65,573,770 shares of AIG common stock in the offering at the public offering price of $30.50 per share for an aggregate purchase amount of approximately $2.0 billion. The exercise of the over-allotment option increases Treasury's proceeds from the sale to approximately $5.75 billion. AIG did not receive any of the proceeds from the sale of the shares of AIG common stock by Treasury.
The offering reduced Treasury's remaining TARP investment in AIG to approximately $29 billion, consisting of approximately 1.06 billion shares of AIG common stock (with a market value of approximately $33.7 billion based on the May 9, 2012 closing sale price on the New York Stock Exchange), and reduced Treasury's percentage ownership of AIG common stock to approximately 61 percent. Total outstanding or authorized U.S. Government assistance has now been reduced by 79 percent from the original $182 billion.
“This sale is another sign of AIG's continued hard work to ensure that taxpayers recoup their investment in AIG at a profit,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “We are extremely pleased with this outcome, especially that the over-allotment option was exercised, proving that there is support for AIG at these levels. As we continue to work with the Treasury to reduce the U.S. Government's investment in AIG, we remain dedicated to rebuilding AIG as a better company – one that is committed to creating value for our shareholders, customers, partners, and employees.”
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect AIG's current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Except for AIG's ongoing obligation to disclose material information as required by federal securities laws, it does not intend to provide an update concerning any future revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.
American International Group, Inc. (AIG)
Jim Ankner, 212-770-3277
Liz Werner, 212-770-7074