November 25, 2019 / 10:21 PM / 11 days ago

AIG to sell 76.6% stake in Fortitude Re for $1.8 billion

FILE PHOTO: The AIG logo is seen at its building in New York's financial district March 19, 2015. REUTERS/Brendan McDermid

(Reuters) - U.S. insurer American International Group Inc (AIG.N) said on Monday it would sell a major portion of its stake in reinsurer Fortitude Re to buyout fund Carlyle Group (CG.O) and Japanese insurer T&D Holdings (8795.T) for about $1.8 billion.

Following the deal, AIG’s stake in the company will drop to 3.5% from about 80%, while Carlyle’s ownership in the company will rise to 71.5% from about 19.9%. T&D will have a 25% stake.

The transaction is expected to close in mid-2020.

Willkie Farr & Gallagher LLP served as legal adviser to AIG.

Debevoise & Plimpton LLP was Carlyle’s legal adviser, while Oliver Wyman was its financial adviser.

Citi was T&D’s financial adviser and Nishimura & Asahi, King & Spalding LLP and Appleby were its legal advisers.

Reporting by Abhishek Manikandan in Bengaluru; Editing by Anil D'Silva

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