AIG Agrees to Sell 50% Interest in London City Airport

Amercian International Group is selling its stake in a London airport.

Global Infrastructure Partners (GIP) said it has entered into a definitive agreement to acquire AIG-Financial Products’ 50 percent interest in London City Airport. The transaction is expected to close in October 2008.

This acquisition will bring GIP’s ownership interest in London City Airport to 100 percent.

The price was not disclosed.

AIG is under pressure to sell of assets to pay back an $85 billion rescue loan from the U.S. government.

AIG and GIP jointly purchased London City Airport in 2006, with each owning 50 percent.

London City Airport is a business airport with 10 airlines serving 33 destinations.

GIP is an independent fund that invests worldwide in infrastructure assets. GIP has offices in New York, London and Hong Kong and operational headquarters in Stamford, Conn.