Aimia rejects bid by Air Canada, TD, CIBC and Visa Canada Consortium for Aeroplan Program

Air Canada issued this statement:

  • Proposal provided the best outcome for all Aimia stakeholders and Aeroplan members, and provided the only opportunity for all Aeroplan Miles to transfer into Air Canada’s new loyalty program.
  • Proposed transaction, including cash and assumption of Aeroplan’s redemption liabilities, would have delivered a sizeable premium to Aimia share price.

Air Canada, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and Visa Canada Corporation have announced that Aimia Inc. has rejected their proposal to acquire its Aeroplan loyalty business disclosed on July 25, 2018. The parties had set a deadline of August 2, 2018 for Aimia to accept the proposal.

Air Canada, TD, CIBC and Visa enhanced the offer and engaged in extensive discussions with Aimia over the past several days to attempt to reach an economically viable agreement.

The proposal would have ensured value and continuity for Aeroplan members as well as customers of Air Canada, TD, CIBC and Visa. As previously communicated, it would have also allowed Aeroplan Miles to transfer into Air Canada’s new loyalty program in 2020, providing convenience and value for millions of Canadians.

The July 25 proposal was for a total consideration of $2.25 billion, including $250 million in cash and the assumption of approximately $2 billion of Aeroplan points liability. The proposal implied an estimated market equivalent value of $3.64 per Aimia share, a 52.3% premium to the 30-day VWAP and a 45.6% premium to the spot closing price as of July 24, 2018. The market equivalent value was comprised of the Aeroplan loyalty business proposal value of $1.64 per Aimia common share plus non Aeroplan loyalty program net assets valued at $2.00 per common share based on fair market value estimates contained in Mittleman Investment Management’s Q1 2018 investor letter.*

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