Diversified Royalty Corp T.DIV

BMO will own Air Miles as of June 01, 2023

[Divies]

TORONTO, May 12, 2023 /CNW/ - BMO (TSX: BMO) (NYSE: BMO) today confirmed it received Court approval to acquire LoyaltyOne's AIR MILES Reward Program (AIR MILES) business. The transaction is expected to close on June 1, 2023

[Dadsaid2]

I doubt BMO will want to continue to pay DIV  the AIR MILES royalty and will buy it out including the Trademark.  I would think that is being negociated right now.  Hopefully DIV gets a decent price for the buyout and then uses the cash to buy another royalty or paydown debt or even pay a special dividend.  I think by not commenting on the whole thing, DIV is doing the right

[Dadsaid2]

Upon second thought, BMO bought the business that runs AirMiles and will continue to operate it as a separate company.  They state they want to grow the rewards program with obvious advantages to their credit card business among other things.  If this growth happen it will be good/great for DIV.  Can anyone clarify or comment, will the change in operators of the AirMiles program

[JayBanks]

We are all guessing on here, BMO will review thier options and make a plan going forward... Until we get told, nothing changes for now we collect as per agreed... Its likely for BMO to get rid of us they would need to pay some sorta breakup or let us expire if there is an expiration date. Other than that I believe we are all flying blind. It's unlikely BMO needs us, but as smart bankers

[dogatcat]

There is always terms in a contract like a royalty agreement that outline how the agreement can be terminated.  That is why lawyers exist.   There has to be a buyout or some sort of settlement to end the contract early.  All of the procedures are outlined.   We just don't know the details.