Chinese consortium to buy 80 % of AIG's aircraft leasing unit ILFC for $4.23 bn
10 December 2012
A Chinese consortium led by New China Trust Co Ltd yesterday agreed to buy 80.1 per cent of American International Group's (AIG) International Lease Finance Corp (ILFC), for $4.23 billion, valuing the aircraft leasing unit at $5.28 billion.
Under the deal that has to be passed by the US regulators, New China Trust, China Aviation Industry Fund and P3 Investments Ltd, will buy 80.1 per cent of ILFC, with the option to buy another 9.9 per cent.
The consortium will be expanded to include an arm of China's largest bank, Industrial and Commercial Bank of China, upon obtaining Chinese regulatory approvals.
AIG, the largest insurer in the US, said that ILFC will retain its current management and will appoint a new board with a majority of US and European aerospace and financial industry experts.
AIG expects to record a non-operating loss of approximately $4.4 billion, which includes a non-cash charge of approximately $1.8 billion associated with the utilisation of tax net operating loss carry forwards from this transaction.
After its acquisition, ILFC will retain operational independence and continue to be headquartered in Los Angeles, California. ILFC's CEO, Henri Courpron and president Frederick Cromer will continue to operate and manage the business.