American International Group Inc. announced it has sold its AIG Private Bank Ltd. subsidiary.
The company sold the bank, based in Zurich, to a subsidiary of Aabar Investments PJSC, Abu Dhabi, for $308 million.
AIG chairman and chief executive officer Edward Liddy said the deal is part of a plan for the sale of some of the company’s assets to repay more than $150 billion in loans from the U. S. government, which has an 80% stake in the company.
Under the terms of the sale agreement, Aabar, a global investment company, paid AIG approximately $253 million for the entire share capital of AIG Private Bank, and assumed around $55 million of intra-company loans outstanding to AIG Private Bank.
Liddy noted, “This is the fourth transaction we have closed in the past three weeks, and it is one of 10 asset sale agreements we have reached in the past few months, despite a very challenging environment.”
Several other sales transactions are under discussion, Liddy said.
Aabar is renaming the bank Falcon Private Bank Ltd.