AIG sells 90 pct of plane leasing unit for $5.28B

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Associated Press

Posted on December 9, 2012 at 7:00 PM

Updated Monday, Dec 10 at 12:02 AM

NEW YORK (AP) — American International Group Inc. says it will sell up to 90 percent of its airplane leasing unit International Lease Finance Corp. to an investor group led by Weng Xianding, chairman of New China Trust Co. Ltd., for approximately $5.28 billion.

The investor group, which includes New China Trust, China Aviation Industrial Fund and P3 Investments Ltd., will acquire 80.1 percent of ILFC for approximately $4.23 billion, with an option for an additional 9.9 percent stake. AIG will keep at least 10 percent of the company.

ILFC will remain based in Los Angeles. The agreement needs approval from U.S. and Chinese regulatory authorities.

New York-based AIG has been selling off subsidiaries to raise money to pay back its $182 billion bailout from the government during the economic meltdown.

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