Aimia Inc T.AIM.PR.D

Wow…PLM closed today ..$6.13 per share in cash

[nozzpack]

 

Aimia closes PLM transaction

 

2022-07-15 15:14 ET - News Release

 

Mr. Phil Mittleman reports

AIMIA CONFIRMS CLOSING OF PLM TRANSACTION

Aimia Inc. has confirmed the closing of the PLM transaction. 

Aimia Holdings U.K. Ltd. and Aimia Holdings U.K. II Ltd. have received $537-million in net cash proceeds, subject to certain postclosing adjustments. In addition, an earnout in an amount of approximately $27-million on a net basis is payable to Aimia Holdings U.K. and Aimia Holdings U.K. II in cash should the PLM loyalty program achieve certain targeted annual gross billings amounts by 2024.

Phil Mittleman, chief executive officer of Aimia, said: "Today is an important day for Aimia stakeholders. Having weathered a pandemic, Aeromexico's bankruptcy and the recent dislocations in world markets, Aimia is extremely well positioned to deploy these substantial cash proceeds towards the acquisition of established businesses with long track records of growth and free cash flow generation. As we carry out these acquisitions, we intend to utilize over $700-million in capital and operating losses we have available to enhance our after-tax returns. In addition, we will continue to opportunistically utilize our NCIB [normal course issuer bid] to repurchase our common shares."

Mr. Mittleman added: "I would like to thank Aeromexico and the PLM team for our long and successful partnership, their careful management of PLM and the airline through the most difficult period in aviation history, and their tireless efforts to structure and execute this transaction. We wish Aeromexico tremendous success moving forward with Club Premier as a wholly owned loyalty program."

The terms of the transaction are in U.S. dollars. The Canadian dollar amounts ($564-million, or $6.13 per common share) have been translated at a U.S.-dollar/Canadian-dollar exchange rate of 1.309 as of July 15, 2022. Approximate consideration per common share is calculated on the basis of 91,944,936 common shares outstanding as of July 15, 2022.

About Aimia Inc.

[nozzpack]

" Upon closing of the PLM transaction, Aimia Holdings U.K. and Aimia Holdings U.K. II will receive approximately $531-million in net cash proceeds " So, upon closing, given the weaker CAD, we are worth $564 million or $33 million more than expected. These numbers indicate that book value, mostly all cash, is now about $9.75 per share or more than twice todays closing price..

[Konaboy]

Very much looking forward to the open on Monday !

[AIMIATARD]

ELI5: What are the next steps?

[Konaboy]

Sell: AIM Buy: CJ, FRU, BTE Book flights to Hawaii

[Hadituptohere]

Below is the only sensible path if the board cares about shareholders. If they elect not to do so, then you will know that their generous and multi-layered bonuses to themselves have irreparably misaligned their interests and yours: Step 1: Immediately back every single share they can upto $7, cognizant that each purchase is highly accretive to the intrinsic value of Aimia shares. I doubt this

[Konaboy]

Concur that there has been no real action towards shareholders in years.  Trust us, they say.  We manage the assets as if they were our own, they say. 1) I am going to be very seriously disappointed if the market does not give us at least a $9 value on Monday.  There will be a discount to NAV, but for gads sake we are talking about so much cash.   And honestly, if

[nozzpack]

I think that we will see a special cash dividend in the $0.50 to $0.75 range. And, they keep repeating acquiring cash flowing businesses that would benefit from the millions of tax loss pools that currently show no value in the current market cap. If effected, the conversion of tax loss pools to dividends  would provide signifucant if not a substantial and recurring increases in dividend

[Hadituptohere]

I do not believe a much larger dividend is sensible, unless it is categorized as a nontaxable return of capital. If invested soundly into liquid securities right now, that money could grow into multiples of itself over the next year. $1 per share is my upper limit of comfort on this consideration.  In so far as to exclude the Mittelman holdings as an option, I do not agree on this point

[Konaboy]

There were a considerable number of doubles triples and better post 2008, timing and cash on hand. How about post 2020? I'm at triple, and I'm far from pro. And when will this bear end so that the recovery can begin? All good, ladies and gentlemen place your bets, the wheel spins at 930 on Monday morning! I may hang for a few days, but if I don't see communication, o and g earnings are