AIG to Sell 90% of Plane Leasing Unit

NEW YORK -- American International Group Inc. (AIG) says it will sell up to 90% of its airplane leasing unit International Lease Finance Corp. to an investor group led by Weng Xianding, chairman of New China Trust Co. Ltd., for approximately $5.28 billion.

The investor group, which includes New China Trust, China Aviation Industrial Fund and P3 Investments Ltd., will acquire 80.1% of ILFC for approximately $4.23 billion, with an option for an additional 9.9% stake. AIG will keep at least 10% of the company.

ILFC will remain based in Los Angeles. The agreement needs approval from U.S. and Chinese regulatory authorities.

New York-based AIG has been selling off subsidiaries to raise money to pay back its $182 billion bailout from the government during the economic meltdown.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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