NEW YORK (AP) — AIG is selling its aircraft leasing business International Lease Finance Corp. to AerCap in a cash-and-stock deal valued at approximately $5.4 billion.
International Lease Finance has almost 1,000 owned and managed aircraft and has commitments to buy approximately 330 high-demand, fuel-efficient aircraft. It will become a subsidiary of AerCap.
American International Group Inc. said Monday that this is the last major sale of one of its non-core assets. AIG received the biggest bailout of the financial crisis five years ago. The insurer has repaid the bailout money and has undergone a massive restructuring that cut its size in half as it focused on its core insurance business.
AIG initially had a deal to sell up to 90 percent of International Lease Finance's stock to Jumbo Acquisition Ltd., but ended that agreement before striking its deal with AerCap.
AerCap, based in the Netherlands, is an aircraft leasing company. It has offices in Ireland, the U.S., China, Singapore and the United Arab Emirates.