The FINANCIAL — The Equities business of UBS Investment Bank announced on January 19 that it has entered into a binding agreement to purchase the commodity index business of AIG Financial Products Corp, including AIG’s rights to the DJ-AIG Commodity Index.
This commodity index business is comprised of a product platform of commodity index swaps and funded notes based on the benchmark Dow Jones-AIG Commodity Index (DJ-AIGCI).
According to UBS, the purchase price for the transaction is $15 million, payable upon closing, and additional payments of up to $135 million over the following 18 months based upon future earnings of the purchased business. The closing is subject to a number of regulatory and other conditions. No assurances can be given that any such conditions will be satisfied.
The transaction is expected to close by May 2009.