After rejecting previous offers, Aimia Inc. (TSX: AIM) has reached a deal to hand over its stake in the Aeroplan loyalty program to a consortium led by Air Canada.
The group, which also includes Visa Canada, TD Bank and CIBC agreed in principle to pay $450 million and assume $1.9 billion in rewards obligations. In a news statement on the deal, Air Canada President and CEO Calin Rovinescu stated:
“This transaction, if completed, should produce the best outcome for all stakeholders, including Aeroplan Members, as it would allow for a smooth transition to Air Canada's new loyalty program launching in 2020, safeguarding their miles and providing convenience and value for millions of Canadians."
More information on this story can be found here. Mittleman Brothers, who hold a 17.6% share in Aimia agreed to vote in favour of the proposed transaction and in their own news statementcalled this “the best available outcome” for stakeholders.
Aimia had rejected earlier offersof $250 million and $325 million as the future of the program was up in the air when Air Canada announced that it planned to launch its own loyalty rewards plan in 2020 after its partnership with Aimia expires.
The deal is expected to close this fall. Aimia opened up 18% Tuesday at $4.52.