American International Group, Inc. (AIG) and an investor group led by Mr. Weng Xianding, New China Trust Co. Ltd. chairman, have announced an agreement whereby AIG will sell up to a 90% stake in International Lease Finance Corporation (ILFC) to the investor group.
The transaction would value ILFC, a non-core asset for AIG, at US$5.28bn.
The investor group of New China Trust Co. Ltd., China Aviation Industrial Fund and P3 Investments Ltd. has agreed to acquire 80.1% of ILFC for approximately US$4.23bn, with the option to acquire a further 9.9%.
Should the necessary Chinese regulatory green light be given and the option taken up the investor group is expected to expand to include New China Life Insurance Co. Ltd.
The transaction is predicted to be completed in the second quarter of 2013 and would create a solid and sustainable strategic partnership for ILFC, according to AIG President and Chief Executive Officer Robert H. Benmosche.
Category: Insurance News