Air Canada, TD Bank, CIBC and Visa Canada offered CAD$2.25 billon to purchase the Aeroplan program back from Aimia. The deal assumes $2bn in liabilities for points outstanding and offers $250mm to Aimia shareholders. The proposed transaction price of $3.46/share values the company near 40% of the trading price in the weeks before Air Canada’s announcement that it would not renew its partnership contract. The offer carries a 2 August 2018 deadline for response.
Aeroplan is Aimia’s largest operation and carries an uncertain future. Air Canada recently announced plans to launch its own program in 2020, a move that will leave the program without a flagship airline. Aimia recently suggested that it could operate a small charter fleet connecting the most popular award destinations as one means to offset that loss. The long-term viability of that approach remains unclear.
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