AIG sells majority of its stock in Transatlantic Holdings for US$1.136 billion

American International Group (AIG) Inc. is selling a total of 29.9 million shares of its common stock of Transatlantic Holdings Inc. (NYSE: TRH), including a secondary offering of 3.9 million shares, the company announced on June 8.
AIG and its subsidiaries currently own approximately 39.1 million shares of TRH common stock, or approximately 59% of the outstanding shares.
The underwriters of a previously announced public offering of 26 million shares of common stock owned by AIG and its subsidiary, American Home Assurance Company (AHAC), have exercised their option to purchase an additional 3.9 million shares, AIG announced.
“As a result, AIG and AHAC will sell a total of 29.9 million shares for aggregate gross proceeds of [US]$1.136 billion,” AIG announced in a press release. “TRH will not receive any of the proceeds from the secondary offering.”
The secondary offering was made through a syndicate of underwriters led by J.P. Morgan Securities Inc., Goldman, Sachs & Co. and Morgan Stanley & Co. as joint book-running managers, with Lazard Capital Markets LLC as co-lead underwriter.
Dowling & Partners and Fox-Pitt Kelton Cochran Caronia Waller acted as co-managers of the offering.
At the close of the secondary offering, AHAC owns about 9.2 million common shares of Transatlantic Holdings Inc., representing approximately 13.9% of Transatlantic Holdings Inc.’s common shares issued and outstanding.