American International Group Inc.’s (AIG) aircraft leasing unit, International Lease Finance Corporation (ILFC), has announced yesterday that it has agreed to sell 53 aircraft to Macquarie Aerospace Limited, an indirect subsidiary of Macquarie Group Limited, for $1.99 billion.
However, the selling price is well below the book value of the aircraft portfolio of $2.3 billion as of Apr 13, 2010. The deal is expected to be completed by the end of 2010.
AIG had been exploring strategic restructuring opportunities for the ILFC. This unit has been facing challenges with respect to capital raising and in February its founder Steven Udvar-Hazy left the unit amid funding concerns.
AIG, which received federal support worth $182.5 billion that helped prevent its collapse in September 2008, has been trying for the past several quarters to sell assets and streamline its operations in an effort to repay the bailout money.
Recently, AIG completed the sale of a part of its asset management business, PineBridge Investments, to Asia-based private investment firm, Pacific Century Group, for $277 million.
AIG also struck two deals earlier in March. It will sell its American Life Insurance Co. unit for about $15.5 billion to MetLife Inc. (MET) and its Asian life-insurance unit, American International Assurance, to the U.K.’s Prudential Plc. (PUK) for about $35.5 billion. Both the transactions are expected to close by the end of 2010.
The company also raised around $452 million from its stake sale in the reinsurance company Transatlantic Holdings Inc. (TRH).
Read the full analyst report on “AIG”
Read the full analyst report on “MET”
Read the full analyst report on “PUK”
Read the full analyst report on “TRH”
Zacks Investment Research
