Bought by UBS for $15m plus $135m depending on future earnings.
AIG Financial Products Corp (AIG-FP) reported today that it has completed the sale of its commodity index business to the equities business of UBS Investment Bank, including AIG’s rights to the DJ-AIG Commodity Index.
AIG-FP, which was at the centre of AIG’s financial difficulties in 2008, began the process of unwinding its businesses and portfolios late last year.
The purchase price for the transaction is $15 million, payable upon closing, plus additional payments of up to $135 million over the following 18 months based on future earnings of the purchased business. Approximately 13 AIG-FP employees involved with the commodity index business are joining UBS Investment Bank in connection with the sale.
“With this sale, AIG has realized value from the sale of a profitable business unit of AIGFP in connection with the ongoing unwind of AIGFP’s businesses and portfolios,” said Gerry Pasciucco, AIG-FP Chief Operating Officer.