May 14, 2014 / 10:07 PM / in 4 years

AIG completes sale of aircraft leasing unit to AerCap

NEW YORK (Reuters) - Insurer American International Group (AIG.N) on Wednesday said that it had completed the sale of its aircraft leasing unit to AerCap Holdings (AER.N), marking the end of years of efforts to sell International Lease Finance Corp.

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 airlines.

    Reporting by Luciana Lopez; editing by Andrew Hay

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