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Investing.com – AIG (NYSE:AIG) stock rose 3.6% Thursday on a broad-based deal with Blackstone (NYSE:BX) that includes sale of 9.9% stake for $2.2 billion in its life and retirement business to the private equity giant.
Blackstone will also initially manage $50 billion in assets backing AIG’s life and retirement policies, with that amount increasing to $92.5 billion over six years.
These transactions are expected to close simultaneously by the end of the third quarter of 2021.
AIG will also sell certain affordable housing assets to Blackstone’s real estate investment trust for $5.1 billion. This deal is likely to be completed in the fourth quarter of 2021.
Kathleen McCarthy, global co-head of Blackstone Real Estate, said the company “will make significant investments to improve the apartments while ensuring they remain affordable and in compliance with all rent regulations.”
