American International Group announced it completed the sale of its 100% interest in International Lease Finance Corporation (ILFC) to AerCap Holdings N.V. in exchange for consideration of $3.0 billion of cash and 97,560,976 newly issued AerCap common shares. The total value of the consideration is approximately $7.6 billion based on AerCap’s closing price per share of $47.01 on May 13, 2014. The common shares received by AIG represent an approximately 46% stake in AerCap.

“We are very pleased to have closed on the sale of ILFC,” said Robert H. Benmosche, president and CEO of AIG. “AerCap is a global leader in the aircraft leasing industry, and I believe that this transaction creates a solid partnership for the business and positions it for continued market leadership. However, the aircraft leasing business is not core to our insurance operations, and for this reason we agreed to sell ILFC. I am confident that this sale will have a positive impact on AIG’s liquidity and credit profile, and will enable us to continue to focus on maintaining strong growth and profitability in our insurance operating businesses.”

Benmosche said, “While the ILFC name will no longer exist, its deep roots and legacy will continue to live on with AerCap. I would also like to especially thank all of the ILFC employees for their leadership and commitment, which have made this deal possible.”

Net cash proceeds to AIG were approximately $2.4 billion after the settlement of intercompany loans, and are available for general corporate purposes. Based on the appreciation of AerCap’s share price since the announcement, in the second quarter of 2014 AIG expects to record a non-operating pre-tax gain of approximately $2.2 billion, which is expected to result in an increase in book value per share of $0.97. AIG will account for its investment in AerCap under the equity method of accounting.

In connection with the transaction, David L. Herzog, AIG chief financial officer, and Benmosche have joined AerCap’s board of directors.