AIG sells last non-core asset
American International Group (AIG) has completed the sale of International Lease Finance Corporation (ILFC) to AerCap Holdings marking the last major disposition of AIG’s non-core assets.
The total value of the consideration is approximately $7.6 billion, $2.2 billion more than expected than when the deal was first announced in December 2013. The transaction includes a $3 billion cash payment and 97.6 million Aercap shares.
The shares received by AIG represent an approximately 46 percent stake in AerCap.
In connection with the transaction, David Herzog, AIG chief financial officer, and Robert Benmosche, AIG president and chief executive officer, have joined AerCap’s board of directors.
“We are very pleased to have closed on the sale of ILFC,” said Benmosche. “AerCap is a global leader in the aircraft leasing industry, and I believe that this transaction creates a solid partnership for the business and positions it for continued market leadership.
“However, the aircraft leasing business is not core to our insurance operations, and for this reason we agreed to sell ILFC. I am confident that this sale will have a positive impact on AIG’s liquidity and credit profile, and will enable us to continue to focus on maintaining strong growth and profitability in our insurance operating businesses.
“While the ILFC name will no longer exist, its deep roots and legacy will continue to live on with AerCap. I would also like to especially thank all of the ILFC employees for their leadership and commitment, which have made this deal possible.”
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