Tuesday, December 11, 2012

AIG to sell up to 90 percent of ILFC to Chinese group

(Reuters) - American International Group Inc on Sunday said it would sell up to 90 percent of its ILFC airplane leasing business to a Chinese consortium led by New China Trust Co Ltd in a deal that values ILFC at $5.28 billion.

New China Trust, China Aviation Industrial Fund and P3 Investments Ltd will buy 80.1 percent of ILFC for $4.23 billion, with the option to buy another 9.9 percent. The group will be expanded to include an arm of the Industrial and Commercial Bank of China (ICBC) upon regulatory approval.

New China Trust is 20 percent-owned by British bank Barclays Plc .

AIG said it would record a non-operating loss of $4.4 billion on the sale, including a charge for tax-related items. It expects the deal to close in the second quarter of 2013.

ILFC will retain its current management and continue to be based in Los Angeles. It will appoint a new board with a majority of U.S. and European representatives, AIG said.

News of the potential deal was first reported on Friday. AIG had been pursuing an initial public offering of ILFC for more than a year, but found market conditions unfavorable.

(Writing By Ben Berkowitz; Editing by Leslie Adler)

Source: http://news.yahoo.com/aig-sell-90-percent-ilfc-chinese-group-002656815--finance.html

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