American International Group (AIG) and an investor group led by New China Trust Co Ltd chairman Weng Xianding entered (09-Dec-2012) into an agreement under which AIG will sell up to a 90% stake in International Lease Finance Corporation (ILFC), a non-core asset, to the investor group in a transaction that values ILFC at approximately USD5.28 billion. The investor group comprised of New China Trust Co Ltd, China Aviation Industrial Fund and P3 Investments Ltd has agreed to acquire 80.1% of ILFC for approximately USD4.23 billion, with an option to acquire an additional 9.9% stake. Upon receipt of required Chinese regulatory approvals and exercise of the option, the investor group is expected to be expanded to include New China Life Insurance Co Ltd and an investment arm of ICBC International. The transaction, which is expected to close in 2Q2013, marks another success in the disposition of AIG’s non-core assets. At closing of the transaction, AIG will retain at least a 10% ownership stake in ILFC, allowing it to continue to participate in the growth of ILFC’s unique franchise, including the benefits the investor group will bring to the company. The transaction is subject to required regulatory approvals, including all applicable US and Chinese regulatory reviews and approvals, and other customary closing conditions. When the transaction meets the criteria for “held for sale” accounting treatment, AIG expects to record a non-operating loss of approximately USD4.4 billion, which includes a non-cash charge of approximately USD1.8 billion associated with the utilisation of tax net operating loss carry forwards from this transaction. Under the new owners, ILFC will retain operational independence and continue to be headquartered in Los Angeles. ILFC CEO Henri Courpron and president Frederick S Cromer will continue to operate and manage the business. ILFC currently employs approximately 560 people, including more than 450 people based in the US, and expects to hire additional US-based staff to replace AIG-supported operations. ILFC will remain incorporated in the US following the closing of this transaction and will continue to be registered with the U.S. Securities and Exchange Commission. Credit Suisse is acting as financial advisor to the investor group in connection with this transaction, and Simpson Thacher & Bartlett is acting as legal advisor to the investor group. [more - original PR]
AIG to sell up to 90% stake in ILFC to Chinese investors, HQ to remain in Los Angeles
You may also be interested in the following articles...
HNA's Avolon group to acquire CIT Commercial Air, creating world’s third largest aircraft lessor
HNA Group’s remarkable spending spree continues, with the announcement that its Avolon subsidiary will acquire CIT Commercial Air, the aircraft leasing arm of CIT Group.
The USD10 billion deal will create the world’s third largest lessor - and they may be more to come yet.
Avolon itself was only recently acquired by HNA Group, with the USD2.7 billion purchase agreement being finalised in Jan-2016, via Bohai Capital Holdings.
Avolon is now the core aircraft leasing brand for the HNA Group. Including assets from Hong Kong Aviation Capital, Bohai Capital and several smaller HNA Group leasing firms, Avolon has a fleet of nearly 250 aircraft and almost 200 more on order.
CAPA Aviation Outlook 2017: Australia & New Zealand - amid global uncertainty, China again the rock
As 2016 draws to a close, CAPA - Centre for Aviation reviews the past year for aviation in the Australia Pacific region and what lies ahead for 2017.
In an uncertain world, from the disruption of Brexit to the likely confrontationalist attitudes of a Trump administration, and instability in many parts of the world, from Russia to the Middle East to Asia, Australia and New Zealand's aviation sectors are mostly in rude health, with liberal policy settings and globally high service levels. Yet each of the main airlines in Australia and New Zealand still relies heavily on its domestic markets.
China has asserted its relevance in world aviation recently and over the past couple of years its airlines have rapidly expanded into the two south Pacific countries. With 2017 declared the ‘China Australia Year of Tourism’ by China’s tourism bureau, continued substantial activity can be expected in that market.
Qantas' 787 Perth-London service plans have made clear the role of the long haul medium size equipment, but aside from the innovative elements, retaining a cost focus and keeping the basics under control will be key to the future.