AIA Group Ltd. (1299), the third-largest Asia-based insurer by market value, fell the most in more than five months after American International Group Inc. (AIG) sold $6 billion worth of its shares to help repay a government bailout.
AIA declined 8.4 percent to HK$26.75, the most since Sept. 22 and outstripping the 2.2 percent fall in the city’s benchmark Hang Seng Index. New York-based AIG sold 1.72 billion shares of the Hong Kong-based insurer at HK$27.15 each to institutional investors yesterday and ceased to be AIA’s controlling shareholder, AIA said in an e-mailed statement today.
The sale reduces uncertainty about when and how AIG will exit its remaining holdings of the Asian insurer after it sold a majority stake via its initial public offering in October 2010 to help repay the $182.3 billion bailout. The shares declined today after the sale was priced at the lower end of a target range and 7 percent below AIA’s closing price on March 2.
“AIG’s stake in AIA has been an overhang since the day when AIA went public, given its enormous size,” said Wang Lei, who helps manage about $40 billion of assets as co-fund manager of Thornburg International Value Fund in Santa Fe, New Mexico.
The AIA stock, offered at HK$27.15 to HK$27.50, was the largest share sale globally excluding rights issues this year, according to data compiled by Bloomberg. Companies and their shareholders raised more than $58 billion from initial public offerings and secondary share offerings globally this year, according to the data.
Read more at : http://www.bloomberg.com/news/2012-03-06/aia-shares-decline-after-6-billion-aig-sale.html
AIA declined 8.4 percent to HK$26.75, the most since Sept. 22 and outstripping the 2.2 percent fall in the city’s benchmark Hang Seng Index. New York-based AIG sold 1.72 billion shares of the Hong Kong-based insurer at HK$27.15 each to institutional investors yesterday and ceased to be AIA’s controlling shareholder, AIA said in an e-mailed statement today.
The sale reduces uncertainty about when and how AIG will exit its remaining holdings of the Asian insurer after it sold a majority stake via its initial public offering in October 2010 to help repay the $182.3 billion bailout. The shares declined today after the sale was priced at the lower end of a target range and 7 percent below AIA’s closing price on March 2.
“AIG’s stake in AIA has been an overhang since the day when AIA went public, given its enormous size,” said Wang Lei, who helps manage about $40 billion of assets as co-fund manager of Thornburg International Value Fund in Santa Fe, New Mexico.
The AIA stock, offered at HK$27.15 to HK$27.50, was the largest share sale globally excluding rights issues this year, according to data compiled by Bloomberg. Companies and their shareholders raised more than $58 billion from initial public offerings and secondary share offerings globally this year, according to the data.
Read more at : http://www.bloomberg.com/news/2012-03-06/aia-shares-decline-after-6-billion-aig-sale.html
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