The Firm is representing an investor group comprised of New China Trust Co. Ltd., China Aviation Industrial Fund and P3 Investments Ltd. in connection with their agreement to purchase up to a 90% stake in International Lease Finance Corporation (ILFC), which is an aircraft leasing company wholly-owned by American International Group, Inc. (NYSE: AIG).
The investor group, led by Mr. Weng Xianding, the Chairman of New China Trust Co. Ltd., has agreed to acquire 80.1% of ILFC for approximately US$4.23 billion, with an option to acquire an additional 9.9% stake. Upon receipt of required Chinese regulatory approvals, the investor group is expected to be expanded to include New China Life Insurance Co. Ltd. and an investment arm of ICBC International. AIG will retain at least a 10% stake in ILFC.
The transaction values ILFC at approximately US$5.28 billion. The transaction is subject to required regulatory approvals, including all applicable U.S. and Chinese regulatory reviews and approvals, and other customary closing conditions, and is expected to close in the second quarter of 2013.
ILFC, a wholly owned subsidiary of AIG, is a leading aircraft lessor with a global customer base of approximately 200 airlines in 80 countries. Its portfolio consists of over 1,000 owned or managed aircraft, as well as commitments to purchase 229 new high-demand, fuel-efficient aircraft and rights to purchase an additional 50 such aircraft. Under the new owners, ILFC will retain operational independence and continue to be headquartered in Los Angeles. ILFC’s Chief Executive Officer Henri Courpron and President Frederick S. Cromer will continue to operate and manage the business. ILFC will remain incorporated in the United States and will continue to be registered with the U.S. Securities and Exchange Commission.
The Simpson Thacher team includes Kathryn King Sudol, Ian Ho, Vijay Sekhon, Michael Reeves, Sara Schuman, Matt Reichstein, Justin Yi and Judy Yan (M&A), Philip Culhane, Adam Furber and Caitlin Gall (Investment Funds), Alan Brenner and Brett Pearlman (Aircraft Finance); Jason Vollbracht (Tax); Tristan Brown and Linda Barrett (Executive Compensation and Employee Benefits); Peter Thomas and David Shogren (CFIUS), David Vann, Michael Naughton and Etienne Renaudeau (Antitrust), Jonathan Hwang (Credit), Lori Lesser and Corina Gugler (IP) and Adeeb Fadil (Environmental)