NEW YORK May 14 Insurer American International
Group on Wednesday said that it had completed the sale
of its aircraft leasing unit to AerCap Holdings, marking
the end of years of efforts to sell International Lease Finance
The sale also marks AIG's exit from its last non-core
business, just a few years after sour derivative bets nearly
wiped out the company.
While the insurer has paid back a U.S. bailout and even
reinstituted a dividend since the crisis, it is now a smaller,
more narrowly focused company than before.
AIG received $3.0 billion of cash and 97,560,976 newly
issued AerCap common shares, according to an AIG statement, for
a total value of about $7.6 billion based on AerCap's closing
price per share of $47.01 on Tuesday.
Net cash proceeds to AIG were approximately $2.4 billion
after the settlement of intercompany loans, the statement added.
AIG said in December 2012 that it had reached a deal to sell
up to 90 percent of ILFC to a group of investors based mainly in
China for $4.7 billion, but the deal never went through.
Netherlands-based AerCap buys aircraft and rents them to
(Reporting by Luciana Lopez; editing by Andrew Hay)