American International Group Inc. said Wednesday it has agreed to sell its Hong Kong finance business to a Chinese bank for $70 million in cash and $557 million in debt.
AIG agreed to sell 100 percent of its shares of AIG Finance (Hong Kong) Ltd. to China Construction Bank Asia for $70 million in cash, subject to closing adjustments, and repayment of indebtedness and deposits totaling about $557 million.
The transaction is subject to approval by regulators.
AIG Finance, an issuer of credit cards in Hong Kong, said it had more than 500,000 customers as of June 30 and net loan receivables of $619.3 million and retail deposits of $129 million.
Deutsche Bank was financial adviser to AIG on the transaction.
AIG shares rose 88 cents, or 3.5 percent, to $25.80 in morning trading.
(This version CORRECTS Corrects long headline to add million, ADDS stock quote)
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