HONG KONG - Trading in AIA shares was suspended on the Hong Kong stock exchange Monday after bailed-out US insurer American International Group (AIG) announced plans to sell a chunk of the business.
AIG said Sunday it had commenced a sale of ordinary shares through a placing to "certain institutional investors", in order to help repay its debt to the US government, which bailed AIG out to the tune of US$182.3 billion (S$227.9 billion) during the financial crisis.
"AIG expects the pricing of the placing to occur no later than March 6, 2012," the US company said in a press release Sunday on its website.
AIG currently holds 32.89 per cent of AIA's outstanding ordinary shares.
AIA said it expected trading in the company's shares to resume "no later than" Wednesday.
The shares were valued at US$6 billion, according to the Wall Street Journal.