A Chinese state-backed aviation fund has backed the largest-ever Chinese acquisition of a US company through a $4.23bn deal for 80 per cent of AIG’s aircraft leasing unit.
AIG agreed to sell the stake to a group including China Aviation Industrial Fund, New China Trust Co and P3 Investments, according to reports.
It said the company has given the investors the opportunity to buy another 9.9 per cent of ILFC, with AIG set to retain the remaining 10 per cent.
The deal is expected to add New China Life Insurance and an investment arm of ICBC International to the consortium.
The group appointed Credit Suisse as financial advisor and Simpson Thacher & Bartlett as legal advisor, while AIG hired Citigroup, JP Morgan Chase and Morgan Stanley as joint managers for the sale.
AIG’s sale of the asset means the deal bear China Investment Corp’s $3bn investment in private equity firm Blackstone Group in 2007, making it the biggest Chinese investment in a US business, Bloomberg said.
It added the company was offloading ILFC, the world’s second largest aircraft leaser, to focus on its insurance operations and reduce debt.
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