AIA Group 1299

AIA Group 1299

Postby winston » Sat Aug 14, 2010 9:48 pm

DJ Fosun Group-Led Consortium Pulls Out Of Bid For AIG Arm - Report

SHANGHAI (Dow Jones)--A consortium led by China's Fosun Group, a large privately owned investment conglomerate, has pulled out of a bid for American International Group Inc.'s (AIG) Asian insurance arm because the parties couldn't agree a price, the 21st Century Business Herald reported Friday, citing unnamed investment banking sources.

The report said AIA's asian arm, American International Assurance Co., wanted US$32 billion to US$34 billion to be taken over by the consortium, which also includes China Life Insurance Co. (LFC) and state-run debt-clearing agency China Cinda Asset Management Co. That was much higher than the consortium was willing to pay, it added.

In July, Hong Kong newspaper the South China Morning Post said at least four consortia made up of Chinese investors had approached AIG about its Asian insurance division. One was led by Fosun Group, another by Shan Weijian, chairman of Pacific Alliance Group, another by Zhang Songqiao, chairman of Hong Kong-based CC Land Holdings Ltd., along with a consortium of Hong Kong and Taiwanese investors, according to the Hong Kong paper.

Source: Dow Jones Newswires
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Re: AIA IPO

Postby winston » Mon Aug 16, 2010 1:29 pm

UPDATE 1-China consortium may bid for 30 pct of AIA-report

* 30 percent stake to cost $10 billion based on AIA estimate
* AIG seeking pre-IPO investments from China - sources

HONG KONG, Aug 16 (Reuters) - A consortium of leading Chinese companies including Industrial and Commercial Bank of China Ltd <1398.HK><601398.SS>, China Life Insurance Co Ltd <2628.HK> <601628.SS>, plans to bid for a 30 percent stake in American Insurance Group Ltd's Asian life insurance business, AIA, the 21st Century Business Herald reported on Monday.

That would mean an investment of about $10 billion based on AIA's estimated $30 billion value, which was what British insurer Prudential Plc last agreed to pay for AIA before its bid collapsed earlier this year.

Bailed out insurer AIG is planning to list American International Assurance (AIA) on the Hong Kong stock exchange later this year, which could raise about $15 billion, sources have previously told Reuters.

AIG was set to name Citigroup Inc , Deutsche Bank AG , Goldman Sachs Group Inc and Morgan Stanley as joint global coordinators for the IPO, sources told Reuters earlier.

AIG and its advisers were seeking pre-IPO investments from Chinese investors, sources told Reuters, declining to name individual investors.

The Sources declined to be identified as they were not authorised to speak to the media.

Pre-IPO stakes are usually sold at a discount to the IPO valuation and that sets a benchmark for the public offering. A large pre-IPO investment will make it easy for AIG and its advisers to sell the rest of the offer to traditional institutions and mutual funds.

During the negotiations, China Life called for a valuation of $25-27 billion for AIA, compared with the $35.5 billion that Prudential initially agreed to pay for AIA.

The report also said that if the consortium failed to get the 30 percent stake it would not pursue an investment in AIA's IPO.

Large IPOs are commonly either supported by large pre-IPO investments or cornerstone investors, as was the case with Agricultural Bank of China Ltd's <1288.HK><601288.SS> record IPO.

Other members of the consortium include Cinda Asset Management Fosun Group, Hony Capital (an investment arm of Legend Group, parent of Lenovo Group <0992.HK>), and Alibaba.com Ltd <1688.HK>, according to the newspaper.

An AIA spokesman could not immediately be reached for comment. Banks and institutions mentioned in this report were either not available for comment or declined to comment.


Source: Reuters
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Re: AIA IPO

Postby winston » Wed Aug 18, 2010 8:59 am

And how prevalent is this problem throughout the 15 countries or so that AIA operates in ?

STRAITS TIMES - Insurer AIA's Singapore branch is countering poaching raids by rivals by paying huge bonuses to retain top agents and luring recruits with hefty sign-up income after it lost about 700 agents from last year.

Source: Reuters
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Re: AIA IPO

Postby winston » Wed Aug 18, 2010 11:11 am

AIA Singapore hurt by loss of insurance agents-report

SINGAPORE, Aug 18 (Reuters) - AIA, which is working on a listing of its shares in Hong Kong, has lost about 700 agents in Singapore in the past year and is now trying to poach from rival insurers, the Straits Times newspaper reported.

It said AIA, the Asian life insurance arm of American International Group , is offering incentives that will allow recruits to earn up to 135 percent of what they previously achieved.

The aggressive tactics have sparked a warning by the Monetary Authority of Singapore.

"We will not hesitate to take supervisory action against insurers whose agents engage in inappropriate behaviour stemming from aggressive poaching activities," the Straits Times quoted the regulator as saying.

AIA currently has around 3,300 agents in Singapore, down from 4,000 last year, the paper said. The city-state, despite having a population of just 5 million, is one of AIA's biggest markets.

AIA was not immediately available for comment.


Source: Reuters
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Re: AIA IPO

Postby winston » Mon Aug 23, 2010 9:49 am

DJ China Cinda In Talks To Buy Strategic Stake In AIA - Report

HONG KONG (Dow Jones)--China Cinda Asset Management Corp. is leading a mainland China consortium looking to buy a stake in American International Assurance Ltd., the South China Morning Post reported Monday, citing bankers with knowledge of the matter.

Cinda is in talks with American International Group Inc. (AIG), AIA's parent, to buy a stake either before the Asian insurer's initial public offering in Hong Kong in October or during the IPO process as a strategic investor, the report said, citing the bankers.

The report didn't say which other firms are in the consortium.

Earlier this month, the 21st Century Business Herald reported a consortium that included China Life Insurance Co., China Cinda Asset Management and Fosun Group had dropped its bid for AIA because the parties couldn't agree on a price.

But the South China Morning Post report cited the bankers with knowledge of the matter as saying Cinda was pushing ahead with the bid.


Source: Dow Jones Newswires
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Re: AIA IPO

Postby winston » Fri Aug 27, 2010 6:52 pm

AIG decides against strategic investor for AIA: source

HONG KONG - American International Group Inc has scrapped plans to sell a strategic stake in its Asian life insurance business, AIA, ahead of its initial public offering, a source familiar with the process said on Friday.

About four consortiums consisting of Chinese investors had approached AIG with offers to buy a stake in American International Assurance, sources previously told Reuters.

AIG declined to comment.

Source: REUTERS
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Re: AIA IPO

Postby kennynah » Fri Aug 27, 2010 6:57 pm

this has been all too confusing...

one day says wanted to raise money thru debentures, next day says want to IPO, then day after, says not interested in either actions...

forget it lah..... waste time....
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Re: AIA IPO

Postby winston » Fri Aug 27, 2010 7:12 pm

AIG Said to Drop Pre-IPO Sale for AIA to Speed Up IPO

Aug. 27 (Bloomberg) -- American International Group Inc. dropped a plan to sell a stake in its Asian unit ahead of an initial public offering in November to avoid delaying the sale, two people with knowledge of the matter said.

Potential buyers failed to come up with concrete plans on how to finance the stake of as much as 30 percent the New York- based insurer sought to sell pre-IPO, the people said, asking not to be identified because the talks were confidential. Discussions with investors didn’t reach the due-diligence stage on AIA Group Ltd. because of different expectations on price, one of the people said.

New York-based AIG, which is selling assets to repay a $182.3 billion bailout by the U.S., is planning a Hong Kong offering of AIA after Prudential Plc scrapped its purchase of the unit. A 30 percent stake would be worth $9.6 billion, based on an earlier estimate of AIA’s valuation by Goldman Sachs Group Inc., which was hired to handle the stake sale process.

“AIG is under quite some pressure to repay U.S. debt” after the collapse of the Prudential deal, said Olive Xia, a Shanghai-based analyst at Core Pacific Yamaichi. “Failing to get pre-IPO strategic investors will have some impact on market confidence.”

China Life Insurance Co., the nation’s biggest insurer, and Ping An Insurance Group Co.’s asset management unit were among investors interested in buying a stake in AIA before the IPO, two people familiar with the matter said. Fred Hu, a former Goldman Sachs partner, was trying to put together an investor group to invest in AIA, the people said.

Investor Interest

Some of the investors who had shown interest in an AIA stake may be invited to become so-called cornerstone buyers during the IPO process, one of the people said. Cornerstone investors pay the same price as other buyers of an IPO and typically agree not to sell their shares immediately.

China Life Chairman Yang Chao said yesterday it would be “quite difficult” for AIG to reach agreement on pricing with investors before the IPO, citing Hong Kong Stock Exchange rules he didn’t specify.

“Whether we’ll participate in the IPO depends on the terms,” he told reporters in Beijing.

China Life’s board secretary Liu Yingqi wasn’t immediately available for comment.

Phone calls to Ping An’s Shenzhen-based spokesman Sheng Ruisheng’s office weren’t answered. Hu couldn’t be reached on his mobile phone immediately. Angela Yu, a Beijing-based spokeswoman at Goldman Sachs, and Patricia Chua, a spokeswoman for AIA in Hong Kong, declined to comment.

A stake sold before an IPO usually fetches a discount to the public offer.

‘Open Attitude’

Ping An President Louis Cheung said his company has always maintained “an open attitude toward good investment opportunities, no matter it’s participating in an IPO or an equity investment before IPO.” He was responding to a question on media reports about a potential AIA investment during a briefing in Hong Kong on Aug. 25.

AIG last month hired Deutsche Bank AG, Goldman Sachs and Morgan Stanley to arrange the Hong Kong IPO, three people with knowledge of the plan said at the time. Citigroup Inc. was added to the list later in the month, two of the people said.

Goldman Sachs and Citigroup, both New York based, estimated AIA would be worth $32 billion to $34 billion, while Morgan Stanley estimated the value at $34 billion to $36 billion, people with knowledge of the figures said in June.

London-based Prudential’s $35.5 billion takeover bid for AIA collapsed on June 2 after investors including BlackRock Inc. and Fidelity Investments said the deal was too costly.

Source: Bloomberg
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Re: AIA IPO

Postby winston » Fri Aug 27, 2010 7:17 pm

AIG decides against strategic investor for AIA: source By Denny Thomas

HONG KONG (Reuters) - American International Group Inc (AIG.N) has scrapped plans to sell a strategic stake in its Asian life insurance business, AIA, ahead of its initial public offering, a source familiar with the process said on Friday.

About four consortiums consisting of Chinese investors had approached AIG with offers to buy a stake in American International Assurance, sources previously told Reuters.

AIG declined to comment.

AIA's IPO is expected to raise about $15 billion through a Hong Kong listing by late October or early November, in what could be the biggest IPO on the Hong Kong stock exchange. The tight schedule for the IPO left little room for strategic investors to conduct due diligence leading to the process being scrapped, the source said.

Reuters reported on Wednesday that AIG was set to decide on pre-IPO stakes by early next week, although expectations were running low for a deal to be struck.

The focus will now shift to discussions over selling cornerstone stakes in AIA. The success of AIA's IPO will hinge largely on demand from cornerstone investors, as was seen in the record-breaking IPO of Agricultural Bank of China Ltd (1288.HK) (601288.SS) last month.

Several sovereign wealth funds from Asia and the Middle East, and Hong Kong business tycoons have expressed interest in cornerstone stakes in AIA, sources have previously told Reuters.

While, strategic investors are allotted shares at a discount, cornerstone investors agree to buy into an IPO at the price decided by the institutional book-building process. Cornerstone investors are normally barred from selling their shares for 6-12 months, while strategic investors have much longer lock-in periods.

The presence of strategic investors build confidence in the offer before it goes to institutional investors and also helps in setting a valuation benchmark.

AIG is set to name Citigroup Inc (C.N), Deutsche Bank AG (DBKGn.DE), Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) as joint global coordinators for the IPO, sources have previously told Reuters.

It has also kept Bank of America Corp (BAC.N), Credit Suisse Group AG (CSGN.VX), UBS AG (UBSN.VX), CCB International and ICBC International Holdings as bookrunners on the deal, a source familiar with the matter said on Wednesday.

The addition of these banks means AIG is sticking with the original group of underwriters for AIA, although with Citigroup and Goldman getting more responsibility, some roles have changed.

AIG, which is nearly 80 percent-owned by the U.S. government, is divesting AIA and other assets to repay taxpayers after receiving a $182.3 billion aid package at the height of the financial crisis.

http://www.reuters.com/article/idUSTRE67Q1PH20100827
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Re: AIA IPO

Postby winston » Tue Sep 07, 2010 4:54 pm

AIG seeks HK approval to list AIA on Sept 21: sources

HONG KONG (Reuters) - American International Group Inc (AIG.N) plans to seek Hong Kong listing committee approval to list its Asian life insurance unit, AIA Group Ltd, on September 21, aiming to raise about $15 billion in Hong Kong, sources with direct knowledge of the deal said on Tuesday.

AIG, which is nearly 80 percent owned by the U.S. government, is disposing of assets to repay taxpayers who committed $182.3 billion to prop up the insurer during the financial crisis.

http://www.reuters.com/article/idUSTRE6861A820100907
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