HK tycoon Richard Li buys AIG unit for US$500 mln

Sep. 7, 2009 (China Knowledge) - Hong Kong-based Pacific Century Group, which is controlled by business tycoon Richard Li Tzar-kai, has inked a deal worth around US$500 million with American International Group Inc to take over part of the U.S. company’s investment advisory and asset management arm, AIG Investments, sources reported on Monday.

Bridge Partners, a subsidiary of Pacific Century, will make the acquisition, according to the report. AIG will retain its in-house investment operations.

Pacific Century Group will pay US$300 million in cash, and expects to pay an additional US$200 million to AIG in carried interest and other payments linked to the future performance of the business, the Wall Street Journal reported.

Reportedly, Li, who is also chairman of Hong Kong-listed PCCW Ltd<0008>, chairman of Singapore-based Pacific Century Regional Developments Ltd and a non-executive director of the Bank of East Asia<0023>, was mulling teaming up with a consortium led by Franklin Templeton Investments to pursue the AIG assets, but no other strategic or financial investors have been involved in the deal so far.

New York-based AIG Investments, which was incorporated in 1996, currently operates in 32 countries and manages about US$85 billion in assets on behalf of pension funds, insurance companies and other such clients.