American International Group and IPC Holdings, Ltd. announced that AIG has agreed to sell 13.397 million IPC common shares at $27 per share in an underwritten public offering (See IJ Website Aug. 9).
The transaction is expected to close August 15.
AIG has also given the underwriters an option to purchase up to 2 million shares to cover over-allotments, if any. Assuming the option is exercised AIG would no longer own any shares in IPC.
IPC will not receive any of the proceeds of the sale, which will be around $405 million, if the underwriters exercise their option.
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