AIG Sells Stake in London City Airport

London — AIG, New York, has sold its 50% stake in London City Airport, as it embarks on a disposal of assets in an effort to repay the $85 billion U.S. government rescue loan.

It is considering selling more than 15 businesses, including International Lease Finance Corp., Los Angeles, its aircraft leasing unit, a stake in a large U.S. reinsurer and billions of dollars in properties. Edward Liddy, AIG CEO, is expected to announce later this week what other assets could be for sale.

Global Infrastructure Partners (GIP), its partner in the purchase of London City airport two years ago, said it had entered into a definitive agreement to acquire AIG-Financial Products’ stake, giving it 100% control. The deal was expected to close next month. No financial details were disclosed.

London City Airport was sold in October of 2006 by Dermot Desmond, an Irish financier, in a deal that placed an enterprise value of around £750 million on the company, well in excess of early analyst estimates. The sale provided proceeds of about £650 million to Desmond, who had previously bought the airport for £23.5 million in 1995 from Mowlem, the UK construction group.

GIP is an independent $5.6-billion fund that invests worldwide in infrastructure assets, including power and utilities, natural resources infrastructure, air transport infrastructure, ports, rail, water distribution and treatment and waste management.

Source: The Financial Times