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Monday, December 10, 2012

AIG To Sell Aircraft Leasing Business to Chinese Investor Group

American International Group (AIG) has entered into an agreement to sell 80 percent of its aircraft-leasing business to a group of investors led by New China Trust Co. Chairman Weng Xianding for $4.2 billion.

The agreement will give the investment group majority control of AIG's International Lease Finance Corp. (ILFC), the world’s second largest aircraft leasing company with a fleet of more than 1,000 jets for 177 airlines worldwide. The investment group includes New China Trust Co., China Aviation Industrial Fund and P3 Investments.

If U.S. and Chinese regulators approve the deal, it will be one of the largest acquisitions of an American business ever by Chinese investors.

“While ILFC is an extremely strong business platform and AIG will retain a minority stake as a passive investor, the aircraft leasing business is not core to our insurance operations. Upon completion, the transaction will have a positive impact on AIG’s liquidity and credit profile and will enable us to continue to focus on our core insurance businesses,” said Robert H. Benmosche, president and chief executive officer at AIG.

Under the new agreement, ILFC will continue to be headquartered in Los Angles, with the acquisition team focused on expanding its presence in the Asian market. More 

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