US-based insurance company American International Group (AIG) has completed the divesture of its 100% interest in International Lease Finance Corporation (ILFC) to AerCap, in a mixture of cash and share transaction totaled at nearly $7.6bn.
The completion of transaction, which was originally signed in December 2013, is part of its strategy to offload non-core business and to concentrate on underwriting operations.
The $7.6bn deal was structured into $3bn cash payment and 97,560,976 newly issued AerCap common shares. By receiving AerCap common shares, AIG has become owner of 46% stake in AerCap.
AIG president and CEO Robert Benmosche said: "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.
"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."
In connection with the transaction, David Herzog, AIG chief financial officer, and Benmosche have joined AerCap’s board of directors.
AIG, which was on the verge of being collapsed during the financial crisis of 2008, has divested many non-core operations and reduced operational expenses, to bring the company back on the profitable track.
In February 2014, AIG announced that it will reduce approximately 1,500-1,900 headcounts, as part of its cost cutting drive and to streamline operations.
Serving customers in more than 130 nations and regions, AIG offers property-casualty, as well as life insurance and retirement insurance products and services.
Image: AIG Building on 175 Water Street, New York City. Photo courtesy of AIG.