logo
  Join        Login             Stock Quote

AIG (AIG) Agrees To Sell Stake In ILFC Subsidiary For US$5.28B

 December 10, 2012 06:58 AM
 


(By Balachander) American International Group Inc. (NYSE: AIG) agreed to sell a 90 percent interest in aircraft lessor International Lease Finance Corp. (ILFC) for roughly US$5.28 billion to a group of Chinese investors.

The New York-based insurer has stated that its ILFC subsidiary a non-core asset.

"While ILFC is an extremely strong business platform and AIG will retain a minority stake as a passive investor, the aircraft leasing business is not core to our insurance operations," AIG CEO Robert Benmosche said on Sunday. 

ILFC is the world's largest independent aircraft lessor, as measured by number of aircraft owned, claims AIG on its website, with portfolio consisting of more than 1,000 owned and managed aircraft. ILFC's technologically advanced and environmentally efficient aircraft portfolio includes 787s and A350s.

[Related -American International Group Inc (AIG): Current Weakness Offers A Buying Opportunity]

AIG expects the deal to have a positive impact on its liquidity and credit profile and will enable the company to continue to focus on its core insurance businesses.

The expects to record a non-operating loss of roughly US$4.4 billion related to the sale.

The investor group is led by New China Trust Co. Ltd., China Aviation Industrial Fund and P3 Investments Ltd. has agreed to acquire 80.1 percent of ILFC for about US$4.23 billion, with an option to acquire an additional stake of 9.9 percent. ILFC employs around 560 people.

[Related -American International Group Inc (AIG): Buy This 'Hated' Company While It's Still An Incredible Bargain]

The deal is expected to be completed in the second quarter of 2013.

Credit Suisse is acting as financial advisor to the investor group related to the transaction.

AIG shares, which have been trading in the 52-week range of $22.19 to $37.67, closed 2.62 percent higher at $34.13 on Friday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageArcelorMittal SA (ADR)(MT): Steel Stocks about to Get Red Hot

For the second consecutive day, a major broker upgraded a steel company by advancing their recommendation read on...

article imageExpress, Inc. (EXPR) Q2 Earnings Preview: Out of Style

Express, Inc. (NYSE:EXPR) will conduct a conference call to discuss its second quarter fiscal 2014 results read on...

article imageSmith & Wesson Holding Corp. (SWHC) Q1 Earnings Preview: Above Target

Smith & Wesson Holding Corp. (NASDAQ:SWHC) plans to release its first quarter fiscal 2015 financial results read on...

article imageUnited States Steel Corporation (NYSE:X): Turning $50 Says Credit Suisse

United States Steel Corporation (NYSE:X) is rolling today; up nearly 2.5% thanks mostly to an upgrade from read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.