American International Group (AIG) is in talks regarding the sale of its aircraft leasing unit to a Chinese consortium after missing the July 31 deadline. The deal was estimated at US$4.8 billion. AIG and the Chinese group are now striving to close the deal by mid-August.
The American International Group is keeping all of its options open, including the selling the aircraft unit to a new buyer. The company is also considering opening its doors through an initial public offering for the business.
The Chinese consortium making the bid includes the China Aviation Industrial Fund, P3 Investments and New China Trust Co, which is one-fifth owned by investment firm Barclays PLC. The Chinese group struck a deal with AIG late part of last year for the purchase of AIG's International Lease Finance Corp (ILFC) unit for an estimated US$4.8 billion.
ILFC is one of the world's biggest aircraft lessors. The company recorded big write-downs during the recent years regarding the value of the older aircrafts in the company's fleet. The US$4.8 million sale price is roughly half of what American International Group once said the business was worth.
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