COMAC C19

AIG to sell up to 90% stake in ILFC to Chinese investors

American International Group (AIG) will sell up to a 90% stake in aircraft lessor International Lease Finance Corporation (ILFC) to a consortium of Chinese investors.

The insurance company says it has signed a binding agreement with an investor group, led by New China Trust, China Aviation Industrial Fund and P3 Investments, which will initially acquire an 80.1% stake in ILFC. The deal also includes an option to acquire a further 9.9% stake. Upon receiving Chinese government approval and exercising the option, another two parties – New China Life Insurance and an investment arm of ICBC International – are expected to join the consortium. AIG says it intends to retain at least a 10% stake in the business and will act as a passive investor.

The transaction is subject to US and Chinese regulatory approvals and is expected to close in the second quarter of 2013.

AIG says the purchase value of ILFC, which owns a fleet of over 1000 commercial aircraft and has commitments on a further 229, stands at approximately $5.28 billion.

AIG acquired ILFC in 1990, but had been looking to sell the business as it was not core to AIG’s insurance operations.

Well, this should be good for leasor demand for C919 and to the detriment of other airframers.
+ Perhaps the joint Russian/Chinese widebody endeavor, if that materializes?