Property group to buy local AIG units
MANILA, Philippines -- Real estate group Filinvest Development Corp. is buying the local thrift bank and consumer finance units of troubled US giant AIG, a Filinvest official said Friday.
Filinvest's East West Bank is acquiring Philam Savings Bank as well as AIG's auto finance and leasing unit, East West president and chief executive Antonio Moncupa told Dow Jones Newswires.
The price was not disclosed, but Dow Jones quoted unnamed sources as saying East West will pay a 25 percent premium over the companies' combined book value of P1.6 billion ($33.8 million).
The bank and the consumer finance and leasing arm are units of Philippine American Life and General Insurance Co., also known as Philamlife.
American International Group (AIG) has said it plans to sell Philamlife's other assets, including its flagship insurance business, to repay a multi-billion-dollar rescue loan from the US government.
The Philamlife group had total assets of about $170 billion when the planned sale was announced last year.
Source: Inquirer