American International Group Inc said on Tuesday it agreed to sell its consumer finance operations in Argentina to Banco de Galicia y Buenos Aires and an investment group arranged by Grupo Pegasus.
The business being sold consists of Compania Financiera Argentina, Cobranzas y Servicios and AIG Universal Processing Center. The terms of the transaction were not disclosed.
CFA provides personal loans in Argentina and has about 1 million customers, AIG said.
AIG is in the midst of a massive restructuring as it tries to sell or spin off assets to raise money to pay back $85 billion borrowed from taxpayers. In all, the U.S. government has committed up to $180 billion to rescue AIG.
UBS acted as financial adviser and Kramer Levin Naftalis & Frankel served as legal counsel to AIG on the CFA transaction.
In January, sources had told Reuters that AIG was also selling its consumer finance businesses in Colombia and Mexico.
AIG shares were off 3 cents, or 1.8 percent, at $1.63 in morning trading on the New York Stock Exchange.
(Reporting by Paritosh Bansal; editing by John Wallace)