American International Group (AIG) has initiated a secondary offering of Corebridge Financial common stock.
As the selling stockholder, AIG is making 30 million existing shares available out of the approximately 608 million total shares outstanding. The company has also granted Morgan Stanley, the underwriter for the offering, a 30-day option to acquire up to an extra 4.5 million shares.
The net proceeds from the secondary offering will all go to AIG. Expected to close on June 3, the offering has estimated gross proceeds worth US$876 million, with shares priced at US$29.20 each.
According to AIG’s announcement, the underwriter may periodically sell the common stock shares through various methods, including transactions on the New York Stock Exchange, over-the-counter markets, negotiated deals, or other means, at prevailing market prices, prices related to the market, or negotiated prices.
The secondary offering comes on the heels of AIG’s agreement with Nippon Life Insurance Company for the sale of around 120 million Corebridge common stock shares.
Meanwhile, speaking at Bernstein’s 40th Annual Strategic Decisions Conference last week, AIG chair and chief executive Peter Zaffino (pictured) touched on several topics, including the global insurer’s growth opportunities and the future of its Corebridge shareholding.
It was noted that, until the closing of the Nippon Life transaction, AIG remains consolidated with the life and retirement business.
“We’ve got to go below 47% to deconsolidate,” Zaffino pointed out during the conference. “We’re at 53% now. So whatever trade we do [next], that’s the math… Now we’ve committed with Nippon, we would do up to a max of 15% in this particular calendar year. And then after 1/1/25, we can sell down the rest of 9.9%.”
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