International Lease Finance Corp (ILFC), the plane leasing unit of American International Group Inc (NYSE:AIG) said that it will move forward with its plan to offer its common stock in an initial public offering (IPO) if its transaction with Chinese investors to sell its business fails, according to its latest filing with the Securities and Exchange Commission (SEC).
Chinese investors missed deadline for AIG’s unit
In May, American International Group Inc (NYSE:AIG) said that the Chinese investors missed the deadline to pay the deposit (10% of the purchase price) for its plane-leasing unit. The insurance giant agreed to sell 90% of ILFC for approximately $5.28 billion.
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Last month, the Chinese investors missed another deadline. Last December, the investors agreed to pay 80% or $4.2 billion of the total acquisition for ILFC. Jon Diat, spokesperson for the insurance giant, declined to comment regarding the situation.
Based on ILFC’s filing, its effort to sell its business to the Chinese investors was delayed, and its proposed initial public offering will not happen if the sale goes through. The company wrote, “The closing of the transaction has not occurred.”
American International Group Inc (NYSE:AIG) is implementing strategies to streamline its business operation, and the insurance is trying to sell ILFC to reduce its debt. Its plane-leasing unit owns and manages approximately 1,000 airplanes.
Boeing received orders for 787 Dreamliner
The Boeing Company (NYSE:BA) received 74 orders for its 787 Dreamliner from ILFC. Last June, the plane-leasing company received its first 787 Dreamliner aircraft, which is leased to Norwegian Air Shuttle ASA.
ILFC and Boeing recently delivered another 787 Dreamliner for Aeromexico. According to ILFC, it will lease five Dreamliners to Aeromexico in total.
Henri Courpron, CEO of ILFC said the company accomplished another milestone in its four decade-long relationship with the airline after delivering the Dreamliner. He said, “ILFC obviously shares Aeromexico’s views that the 787 will deliver significant operational benefits and customer value.”
In terms of financial performance, during the first half of the current fiscal year, ILFC’s net income declined from $321.9 million to $82.6 million based on its regulatory filing today. Its revenue from flight equipment rental was $2.07 billion, down by 6.7%.
The shares of American International Group Inc (NYSE:AIG) are trading around $46.58 per share on Thursday in New York.