12/16/2013 06:37 EST | Updated 02/15/2014 05:59 EST

AIG selling aircraft leasing business to AerCap in cash-and-stock deal valued at about $5.4B

NEW YORK, N.Y. - AIG is selling aircraft leasing business International Lease Finance Corp. to AerCap in a cash-and-stock deal valued at approximately $5.4 billion.

The transaction includes $3 billion in cash and about 97.6 million shares of AerCap Holdings NV.

American International Group Inc. said Monday that this is the last major sale of one of its non-core assets.

The insurer initially had a deal to sell up to 90 per cent of International Lease Finance's stock to Jumbo Acquisition Ltd., but ended that agreement before striking its deal with AerCap.

The transaction is expected to close in 2014's second quarter. It still needs approval from AerCap shareholders.

AIG share rose 42 cents to $50.15 in premarket trading.