The U.S. Department of the Treasury has announced plans to sell 206,896,552 shares of its American International Group (AIG) common stock at $29 per share. The aggregate proceeds to the Treasury from the common stock offering are expected to be approximately $6 billion.
As part of the Treasury's common stock offering, AIG agreed to purchase 103,448,276 shares at the offering price of $29 per share – representing $3 billion of the Treasury's expected proceeds from the sale.
‘We're continuing to move forward to wind down [the Troubled Asset Relief Program] and exit our stakes in private companies as soon as practicable,’ says Assistant Secretary for Financial Stability Tim Massad. ‘[This] is another important step in our efforts to recover the taxpayer's investment in AIG.’
The Treasury's remaining investment in AIG will consist of 1.248 billion shares of common stock, and the department's percentage ownership of AIG's outstanding shares of common stock will decline from approximately 77% to 70%.