Insurance giant AIG is currently in talks to sell a 90% stake in its subsidiary International Lease Finance Corporation, the company confirmed in an official statement. The counterparty is a consortium of Chinese firms, including New China Trust and China Aviation Industrial Fund.
ILFC is an aircraft leasing unit and, as such, is not considered a core asset by AIG. The company has been mulling a divestment of the unit for some time.
In its statement, AIG did not disclose a possible price for the stake. A Reuters article quoted the company as saying the sale would be for about $5.5 billion. If an agreement is reached, the sale would be subject to regulatory approval by the relevant authorities in the US and China.
The article AIG in Talks to Sell Bulk of ILFC to Chinese Group originally appeared on Fool.com.Eric Volkman has no positions in AIG. The Motley Fool owns shares of American International Group and has the following options: long JAN 2014 $25.00 calls on American International Group. Motley Fool newsletter services recommend American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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