AIG, which reportedly is close to a deal to pay back federal bailout money, says it will sell its two Japanese life insurance units to Prudential Financial Inc. for about $4.2 billion in cash.
The transaction also includes $600,000 in third-party debt, bringing its total value to approximately $4.8 billion, the insurance company said Thursday.
The sale includes AIG Star Life Insurance Co. and AIG Edison Life Insurance Co. and is part of AIG's plan to repay government bailout money.
AIG was one of the hardest hit financial companies by the credit crisis and received an aid package worth as much as $180 billion. The Wall Street Journal reported Thursday that AIG and federal overseers are finalizing a plan that would allow the insurer to eventually exit from U.S. ownership.
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