US insurance corporation American International Group Inc. is reportedly nearing a deal to sell its plane-leasing unit to AerCap Holdings NV for cash and stock. Sources told Bloomberg that AIG would get $3 billion in cash and about 96 million shares in AerCap. The said stake is valued at about $2.4 billion as of the end of last week. The sale of International Lease Finance Corp. (ILFC) could be announced as early as Sunday, sources added.
ILFC is the world's second-largest aircraft lessor with a portfolio of almost 1,000 planes, the report said.
According to Bloomberg, AIG turned to AerCap after investors led by Hong Kong-based P3 Investments Ltd. failed to deliver the $4.2 billion that they agreed to pay for an 80% stake in ILFC. AIG has been seeking to narrow its business focus as government watchdogs increase their scrutiny of the largest financial firms.
AIG chairman Steve Miller told Bloomberg Television that a very capital-intensive business like ILFC rally doesn't belong in an insurance portfolio.
ILFC's net income was $410.3 million in 2012. It posted a loss of $599.2 million in the first nine months of 2013 on impairments of aircraft, the report said.
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