AIG to gain from IPO of China motor exporter to Iran, SCMP says

Bloomberg: American International Group is likely to gain “tens of millions of dollars” from the initial public offering of a Chinese automaker that does business with Iran, the South China Morning Post reported.

By Joshua Fellman

Oct. 15 (Bloomberg) — American International Group is likely to gain “tens of millions of dollars” from the initial public offering of a Chinese automaker that does business with Iran, the South China Morning Post reported.

AIG, through a unit, owns 13.5 percent in Chongqing-based Lifan Industry Group Co., which exports motorcycles to Iran and where a local factory has a licensing agreement to assemble Lifan’s cars from imported kits, the Hong Kong-based English- language newspaper reported today, citing Mark Herr, AIG’s New York-based vice-president of media relations.

Herr said the investment in Lifan wasn’t in violation in U.S. law and an unidentified U.S. Treasury Department spokesman said the matter didn’t appear to violate U.S. sanctions, the Post said. The China Securities Regulatory Commission will hold an preliminary hearing on Lifan’s IPO application today, it said.