AIG Still Wheeling and Dealing

A week after reports surfaced that American International Group Inc. was having trouble divesting a handful of units, good news came in the form or two sales agreements.

Still seeking to raise funds to repay the nearly $180 billion in bailout loans from the federal government, AIG has agreed to sell its Hong Kong consumer finance and India-based IT services units, according to a Reuters report.

China Construction Bank (CCB) Asia will buy 100% of AIG Finance (Hong Kong) Ltd. for $70 million in cash. The deal also includes repayment of intra-group indebtedness and deposits of about $557 million, the two companies told Reuters.

Concurrently, AIG has ramped up plans to list its Asian insurance unit, American International Assurance Co. Ltd. (AIA), in Hong Kong after failing to find a buyer for a large stake in it earlier this year. In addition, AIG has been seeking buyers for its Taiwan unit Nan Shan Life.

In a separate move, AIG also agreed to sell 100% of its holdings in AIG Systems Solutions Private Ltd., its Indian IT services and solutions arm, to local outsourcer MphasiS Ltd. for an undisclosed amount, Reuters reports.

AIG Systems Solutions, a provider of IT services to AIG firms globally, has more than 800 staff at its facilities in Indian cities of Chennai and Kolkata, MphasiS said.

Additionally, the insurer yesterday said AIG Financial Products had completed the sale of its energy and infrastructure investment assets for net proceeds of approximately $1.9 billion.