ValuePlays

About the Author ValuePlays

Todd Sullivan is a Massachusetts-based value investor and a General Partner in Rand Strategic Partners. He looks for investments he believes are selling for a discount to their intrinsic value given their current situation and future prospects. He holds them until that value is realized or the fundamentals change in a way that no longer support his thesis. His blog features his various ideas and commentary and he updates readers on their progress in a timely fashion. His commentary has been seen in the online versions of the Wall St. Journal, New York Times, CNN Money, Business Week, Crain’s NY, Kiplingers and other publications. He has also appeared on Fox Business News & Fox News and CBNC. His commentary on Starbucks during 2008 was recently quoted by its Founder Howard Schultz in his recent book “Onward”. In 2011 he was asked to present an investment idea at Bill Ackman’s “Harbor Investment Conference”, the idea, Audiovoxx, was the top performing name over the following year. Todd also invests in start-up projects and is an angel investor in @Estimize , @milehiorganics @dailyworth @aguaenerviva and is a backer of “Follow Friday the Film” and “Money for Nothing: Inside the Federal Reserve” For more www.about/me/toddsullivan

Subs: Almost $5B Raised…..


Coming off the heels yesterday of the announcement American International Group (NYSE:AIG) was going to raise just over $500M (with $2.2B left) we get news today they are preparing to raise over $4B by liquidating its stake in AerCap Holdings N.V. (NYSE:AER).

It seems from their 6K filing (foreign issuer) that AER intends to buy just under 1/2 of AIG’s stake (20% of their total share out and AIG has 46%):

Agenda item 10a (voting item):

It is proposed to authorize the Board of Directors for a period of eighteen months, taking effect from the date of this annual general meeting of shareholders, to acquire the Company’s own ordinary shares up to 10% of the issued share capital at the date of the authorization (May 13, 2015), whether through purchases on the stock exchange or by any other means, for a price per share that is between an amount equal to zero and an amount which is not higher than 10% above:

(1) the last previous closing price of the Company’s shares quoted on the New York Stock Exchange on the day that (x) the acquisition of such shares (“Acquisition”) is effected or (y) at the discretion of the Board of the Directors, the binding commitments (through contract, tender offer or otherwise) with respect to an Acquisition (“Binding Commitments”) are entered into, in each case outside opening hours of the New York Stock Exchange; or

(2) the opening price of the Company’s shares quoted on the New York Stock Exchange or, should such quotation not exist, the last previous quotation on the New York Stock Exchange, on the day that (x) the Acquisition is effected or (y) at the discretion of the Board of the Directors, the Binding Commitments are entered into, in each case during opening hours of the New York Stock Exchange.

Agenda item 10b (voting item):

It is further proposed to authorize the Board of Directors for a period of eighteen months, taking effect from the date of this annual general meeting of shareholders, to acquire the Company’s own ordinary shares up to an additional 10% of the issued share capital at the date of the authorization (May 13, 2015), whether through purchases on the stock exchange or by any other means, for a price per share that is between an amount equal to zero and an amount which is not higher than 10% above:

(1) the last previous closing price of the Company’s shares quoted on the New York Stock Exchange on the day that (x) the Acquisition is effected or (y) at the discretion of the Board of the Directors, the Binding Commitments are entered into, in each case outside opening hours of the New York Stock Exchange; or

(2) the opening price of the Company’s shares quoted on the New York Stock Exchange or, should such quotation not exist, the last previous quotation on the New York Stock Exchange, on the day that (x) the Acquisition is effected or (y) at the discretion of the Board of the Directors, the Binding Commitments are entered into, in each case during opening hours of the New York Stock Exchange, subject to the condition that the number of ordinary shares which the Company may at any time hold in its own capital will not exceed 10%.

If approved, the authorizations proposed under agenda items 10a and 10b will together allow the Company to acquire up to a maximum of 20% of its issued share capital, whether at once or in two or more tranches and, if applicable, subject to cancelation of shares in accordance with agenda item 11. The Company may repurchase and acquire such shares at any time during the period of eighteen months, starting from May 13, 2015. Repurchased shares may be canceled with regularity, provided that the general meeting of shareholders adopts the proposal under agenda item 11.

From Bloomberg:

(Bloomberg) — American International Group Inc. registered to sell its 46 percent stake in plane lessor AerCap Holdings NV for a price that values the holding at more than $4 billion, as the insurer streamlines it operations.

AIG would offer 97.6 million shares of AerCap at a maximum price of $43.74 each, AerCap said in a regulatory filing on Tuesday. The insurer obtained the stake through its sale of International Lease Finance Corp. last year to Schiphol, Netherlands-based AerCap.
AerCap said that the offering price may change because the share value is only an estimate.

AIG Chief Executive Officer Peter Hancock said in February that the insurer is in no rush to sell the stake. He said in his first annual letter to investors on Monday that he looks to keep exiting businesses that don’t align with AIG’s most lucrative operations, which are property and casualty, life and retirement coverage.

Hancock did say when full year results were released that they may add $6B in additional capital returns this year as they exit non-core businesses. That number fits with what they hold in PICC and AER. Hancock is a smart guy who isn’t going to come right out and place a number or a time frame on things like this but we are getting to the point where when he insinuates something is going to happen at some point, we can assume it definitely will and it will happen sooner vs later. 

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