“American International Group Inc. AIG +2.59% is in talks to sell a controlling stake in its plane-leasing unit to a Chinese-led consortium for more than $5 billion, according to a person with knowledge of the situation.
The move would mark the second time that the U.S. financial-services group has tried to sell all or part of its International Lease Finance Corp. unit, and it filed last year for an initial public offering of a business deemed as non-core.
The proposed sale of a controlling stake in ILFC, the world’s second-largest jet leasing company by assets after the Gecas unit of General Electric Co. GE -0.35%— would also be the latest in a string of Chinese investments in the U.S.—and among the largest.
The bidding group, led by New China Trust Co., also includes the Industrial & Commercial Bank of China Ltd., 601398.SH +0.26% or ICBC, and the China Aviation Industry Fund, the person with knowledge of the situation said. New China Trust is 20% owned by Barclays PLC. BARC.LN +0.16%
ICBC is an established player in aircraft finance, and Bank of China also has a fast-growing Singapore-based aircraft leasing business.
The AIG talks were previously reported by Bloomberg News, which said ILFC’s management would participate in the transaction as well. A deal isn’t imminent, the person with knowledge of the situation said.”
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