HONG KONG (Reuters) – American International Group Inc (AIG.N) will sell only existing shares in its Asian life insurance unit, AIA Group Ltd, in the unit's upcoming initial public offering, a term sheet showed on Monday.
AIG was subject to a lock-up period of six months after listing and in the subsequence six months it was required to hold at least 30 percent of AIA, it said.
AIG, nearly 80 percent owned by the U.S. government, is disposing of assets to repay taxpayers who committed $182.3 billion to prop up the insurer during the financial crisis.
AIA will not sell new shares within six months of listing and cornerstone investors are also subject to a six-month lock-up period.
AIA planned to kick off its marketing roadshow on Monday, with trading scheduled to start on October 29, sources previously told Reuters.
Citigroup Inc (C.N), Deutsche Bank AG (DBKGn.DE), Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) are joint global coordinators for the IPO.
(Reporting by Kennix Chim; Editing by Chris Lewis)