The UAE will host Expo 2020!
  • Arabic
  • French
  • German
  • Spanish
Supported by the UAE National Media Council

Adia, Asian SWFs eye stake in AIA’s US$15bn IPO

posted on 12/08/2010: 2959 views



Abu Dhabi Investment Authority (Adia) and two other sovereign wealth funds have expressed interest in investing in the US$15 billion initial public offering planned by American International Group's (AIG) Asian life insurance unit.

AIG has started talks with potential investors to sell stakes in its Asian life insurance business AIA ahead of its planned IPO, sources with direct knowledge of the matter said.

Several financial investors, including Temasek Holdings, China Investment Corporation and Adia have expressed interest in buying cornerstone stakes in AIA, they added.

Earlier, the Financial Times said in a report that AIG may place as much as 30 per cent of AIA with institutional investors and wealthy tycoons, rather than offer them minor stakes in an initial public offering.

AIG is aiming to list AIA on the Hong Kong stock exchange by the fourth quarter of this year and the IPO is expected to raise about US$15bn.

"Some preliminary talks have taken place in response to interest from some investors," one source said.

The sources declined to be identified as the talks are private.

AIG is set to name Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley as the joint global coordinators for the IPO, sources have previously told Reuters.

Temasek declined to comment, while the other institutions could not be reached immediately for comment.

Chinese insurance companies and some of that country's largest banks are also looking at taking stakes and financing others, the newspaper said.

AIG spokeswoman Christina Pretto declined to comment.

An IPO of AIA, whose full name is American International Assurance, could raise about US$15bn, and help AIG pay down sums owed to the US government after a series of federal bailouts. – Emirates 24|7

RELATED ARTICLES

25 May 2015 Waha Capital wins Cross-Border Deal Financing of the Year
19 May 2015 Shurooq promotes potential promising investment opportunities in Sharjah at Investment Management Exhibition
18 May 2015 Waha Capital net profit increases 20.2 percent to Dh 182.2 million in the first quarter of 2015
03 May 2015 Shurooq set to take centre stage ATM 2015
27 April 2015 Shurooq promotes Sharjah at World’s Investment Summit in Shanghai