American International Group, Inc. (NYSE:AIG) announced today that it
has completed the sale of its 100% interest in International Lease
Finance Corporation (ILFC) to AerCap Holdings N.V. (NYSE: AER) in
exchange for consideration of $3.0 billion of cash and 97,560,976 newly
issued AerCap common shares. The total value of the consideration is
approximately U.S. $7.6 billion based on AerCap's closing price per
share of $47.01 on May 13, 2014. The AerCap common shares received by
AIG represent an approximately 46% stake in AerCap and are subject to
transfer restrictions as set forth in the Stockholders' Agreement and
Registration Rights Agreement between AIG and AerCap. The transaction
marks the last major disposition of AIG's non-core assets.
"We are very pleased to have closed on the sale of ILFC," said Robert H.
Benmosche, President and Chief Executive Officer of AIG. "AerCap is a
global leader in the aircraft leasing industry, and I believe that this
transaction creates a solid partnership for the business and positions
it for continued market leadership. However, the aircraft leasing
business is not core to our insurance operations, and for this reason we
agreed to sell ILFC. I am confident that this sale will have a positive
impact on AIG's liquidity and credit profile, and will enable us to
continue to focus on maintaining strong growth and profitability in our
insurance operating businesses."
Concluded Mr. Benmosche, "While the ILFC name will no longer exist, its
deep roots and legacy will continue to live on with AerCap. I would also
like to especially thank all of the ILFC employees for their leadership
and commitment, which have made this deal possible."
Net cash proceeds to AIG were approximately $2.4 billion after the
settlement of intercompany loans, and are available for general
corporate purposes. Based on the appreciation of AerCap's share price
since the announcement, in the second quarterof 2014 AIG expects to
record a non-operating pre-tax gain of approximately $2.2 billion, which
is expected to result in an increase in book value per share of $0.97.
AIG will account for its investment in AerCap under the equity method of
In connection with the transaction, David L. Herzog, AIG Chief Financial
Officer, and Mr. Benmosche have joined AerCap's Board of Directors.
Certain statements in this press release constitute forward-looking
statements. These statements are not historical facts but instead
represent only AIG's belief regarding future events, many of which, by
their nature, are inherently uncertain and outside AIG's control. It is
possible that actual results will differ, possibly materially, from the
anticipated results indicated in these statements. Factors that could
cause actual results to differ, possibly materially, from those in the
forward-looking statements are discussed throughout AIG's periodic
filings with the SEC pursuant to the Securities Exchange Act of 1934.
American International Group, Inc. (AIG) is a leading international
insurance organization serving customers in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional, and
individual customers through one of the most extensive worldwide
property-casualty networks of any insurer. In addition, AIG companies
are leading providers of life insurance and retirement services in the
United States. AIG common stock is listed on the New York Stock Exchange
and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
| YouTube: www.youtube.com/aig
| Twitter: @AIGInsurance
| LinkedIn: http://www.linkedin.com/company/aig
AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.
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