(Reuters) - American International Group Inc (NYSE: AIG) said it would sell its aircraft-leasing business to AerCap Holdings NV
AIG, which was nearly wiped out by derivative bets in the financial crisis, has been trying for at least four years to sell International Lease Finance Corp (ILFC) to help repay the costs of a 2008 U.S. government bailout.
AIG shares rose 1.5 percent to $50.48 before the bell on Monday. AerCap shares rose 8.7 percent to $27.10.
Netherlands-based AerCap, which buys aircraft and rents them to airlines, will vie with General Electric's
ILFC will become a wholly owned subsidiary of New York-listed AerCap. AIG will be entitled to nominate two directors for election to the board of AerCap.
AIG CEO Robert Benmosche said in November that the insurer hoped to decide on a sale or an initial public offering of ILFC in the fourth quarter.
The transaction is expected to close in the second quarter of 2014, AIG said on Monday.
UBS was the financial advisor to AerCap, while Goldman Sachs was the financial advisor to AerCap's board.
(Reporting by Avik Das in Bangalore; Editing by Saumyadeb Chakrabarty)