Seeking Alpha

More on AIG's ILFC sale

  • "Upon completion, the transaction will have a positive impact on [our] liquidity and credit profile and will enable us to continue to focus on our core insurance businesses," AIG CEO Robert Benmosche says, regarding the deal to sell ILFC to AerCap (AER). 
  • AER is paying ~$3B (net to AIG after loan settlements is ~$2.4B) in cash and issuing ~97.5M shares.
  • AIG will own around 46% of AER's common shares as a result of the deal, and will thus "include ILFCs operating results in continuing operations."
  • AIG is also providing a $1B revolver. (PR)
  • AIG +2.8% premarket; AER +17.7% premarket
Comments (1)
  • DeepValueLover
    , contributor
    Comments (8140) | Send Message
     
    AIG is proof that you should never declare an entity dead until you've checked its pulse.

     

    From May 2011:

     

    http://bit.ly/J7ojmH

     

    :::Treasury selling its huge 92% stake in AIG -- about 1.7 billion shares worth -- for prices near AIG's book value (upwards of $47 a share), Berkowitz said he now expects the government to sell them closer to the current market price of $27-$29 a share. The significance of his miscalculation is obvious: instead of potentially supporting AIG's share price in the mid-$40s, the U.S. Treasury's share sale is likely to depress the value of Berkowitz's own stake, which includes shares purchased at prices ranging from the mid-$20s to mid-$40s.:::
    16 Dec 2013, 08:18 AM Reply Like
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