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Malcolm

AC To Buy Back Aeroplan?

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That’s some solid investing on AC's part. 

Very well played. 👍

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6 hours ago, Maverick said:

That’s some solid investing on AC's part. 

Very well played. 👍

And the negotiators on Aimia's side holding out for their $450M price after AC & partners initial $250M and $325M offers were declined.

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8 hours ago, Maverick said:

That’s some solid investing on AC's part. 

Very well played. 👍

Agreed.  How much did they sell it for when Milton was at the helm?

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29 minutes ago, conehead said:

Agreed.  How much did they sell it for when Milton was at the helm?

It was spun off in stages. The first tranche of 12.5% got about $250m and the last 20% about $350, but I can't remember what happened in between. It's possible the 2007 sale of a particular large tranche raised about $480m. Without rooting around for the final $$ figure, let's say it fetched north of $1 bn for ACE shareholders., and that was in 2004-07 dollars.

 

  • Thanks 1

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That may not paint the whole pictures unless you bother to determine what the liabilities were back then including that RM was doing his best to put the place out of business. Oh wait he isn't trying, it just came natural to him.

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Jazz was sold off for about $1.2B with a very generous CPA.  At one low point post divestiture, the CHR market cap was under $0.45B. Even with a 25% premium it could have been had for $600-650MM. 

Now with the diversified businesses, the CHR market cap is back above $1B. There is little doubt that at such a price there is no cost/benefit calculation that would remotely justify AC examining ownership cost vs CPA cost.

The sole beneficiaries of the post CCAA sell off were the ACE shareholders. The ACE shareholders were mostly comprised of the unsecured creditors and Cerberus.

Having AC out buying back what was peddled in the post CCAA era is just a further evidence that the terms of the restructuring were beneficial almost exclusively to external parties, not AC.

Pethaps as history re-examines the 2001-2018 era at AC, it is fortuitous that CR exited stage left as CRO in 2003 (not ultimately being responsible for the resulting plan) and returned as CEO in 2008 (to clean up the mess).

Edited by rudder

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President of Aeroplan parent company leaves after less than 3 months

Aimia Inc. has announced the departure of its president, Nathaniel Felsher, less than three months after he took the job. Aimia is in transition mode, as it works to complete the sale of its flagship Aeroplan rewards program to an Air Canada-led consortium for $450 million.

Aimia Inc., is in a transition period following sale of Aeroplan rewards program to Air Canada-led consortium

The Canadian Press · Posted: Nov 23, 2018 4:48 PM ET | Last Updated: 44 minutes ago
 
The president of Aimia Inc., is leaving the company after less than 3 months. Nathaniel Felsher was supposed to steer the company through the hand off of its Aeroplan loyalty program to a consortium including Air Canada, TD Bank, CIBC and Visa Canada Corp. (Mark Blinch/Canadian Press)
 

Aimia Inc. has announced the departure of its president and chief strategy officer less than three months after he took the job.

In late August, the Montreal-based company hired Nathaniel Felsher from Deutsche Bank in New York, where he co-headed the firm's aviation corporate and investment banking group.

"The company wishes to acknowledge Mr. Felsher's contributions during this pivotal period and wishes him well in his future endeavours," Aimia said in a two-sentence release Thursday.

Felsher reported directly to Aimia CEO Jeremy Rabe, pictured here. (Aeroplan)

Felsher, who has experience with loyalty programs, reported directly to Aimia chief executive Jeremy Rabe over the past 12 weeks.

"Having worked with him in the past, I believe his knowledge of the global loyalty and aviation space, strong relationships and corporate finance skills will be a huge asset to our business going forward," Rabe said in a statement on Aug. 27.

An Aimia spokesperson declined to comment.

Transition time for Aeroplan

"It is a short tenure for sure," said Karl Moore, an associate professor at McGill University's business school.

"I've heard he was very helpful in terms of getting them to the place they needed to be with Air Canada and Aeroplan, but clearly he did not fit with where they were going in the future."

Aimia is in transition mode, as it works to complete the sale of its flagship Aeroplan rewards program to an Air Canada-led consortium for $450 million.

The company, which has seen its shares struggle in recent years, launched a review of its strategic direction earlier this month, with Rabe suggesting more asset sales on the horizon.

Shares have hovered at around $4 since the Aeroplan deal was announced on Aug. 21, less than half its stock price from before May 2017. The analytics firm has seen shares decline from a peak of around $20 in the first half of 2014 and net losses totalling more than $400 million over the past five years.

Aimia's global reach has sometimes come at a cost. In February, the company announced it had sold Nectar, a U.K. loyalty program, to British retailer Sainsbury for $105 million, 11 years after Aimia bought it for $755 million.

The Aeroplan agreement — which includes buyers Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and Visa Canada Corp. — would leave the company with more than $1 billion in cash to invest elsewhere, according to Mittleman Brothers, Aimia's largest stakeholder at 17.6 per cent.

Analysts predicted about 1,000 Aeroplan employees — roughly 60 per cent of Aimia's work force — would transfer to Air Canada if the deal goes ahead.

 

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Air Canada Enters into Definitive Agreements to Acquire the Aeroplan loyalty program and for Co-branded Credit Card Partners Français

Air_Canada_Logo.png?w=200

News provided by

Air Canada

08:01 ET

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Agreements are key milestones for new Air Canada loyalty program in 2020

  • Air Canada enters into a definitive share purchase agreement with Aimia Inc. to acquire the Aeroplan loyalty business
  • Air Canada, TD, CIBC and Visa conclude credit card loyalty program and network agreements for future participation in Air Canada's new loyalty program
  • Agreement provides continuity for Aeroplan members to earn and redeem miles with confidence

MONTREAL, Nov. 26, 2018 /CNW Telbec/ - Air Canada today provided the following updates on Air Canada's acquisition of Aimia Inc.'s ("Aimia") Aeroplan loyalty business and significant developments for its new loyalty program launching in 2020.

Air Canada, with the financial support of its partners, The Toronto-Dominion Bank ("TD"), Canadian Imperial Bank of Commerce ("CIBC"), and Visa Canada Corporation ("Visa"), has entered into a definitive share purchase agreement with Aimia for the acquisition of Aimia Canada Inc. ("Aimia Canada"), owner and operator of the Aeroplan loyalty business. 

Concurrently with the signing of the share purchase agreement, Air Canada, TD, CIBC and Visa signed various commercial agreements relating to the acquisition, including credit card loyalty program and network agreements for future participation in Air Canada's new loyalty program, all of which are conditional upon closing of the acquisition of Aimia Canada. Additionally, Air Canada remains in negotiations with American Express, which also issues Aeroplan co-branded products, to secure its continued participation in the Aeroplan program after 2020.

"We are extremely pleased to have concluded the agreement for the purchase of Aimia Canada and to have reached definitive agreements on our co-branded credit card programs with each of TD and CIBC. Subject to closing the purchase transaction, these agreements will produce the best outcome for our customers as well as those of our partners as they will facilitate a smooth transition to our new loyalty program launching in 2020, safeguarding all Aeroplan Miles and providing convenience and value for millions of Canadians. Our program is expected to be one of the best loyalty programs in the industry, which will be exciting for our customers and we are looking forward to communicating details later next year," said Calin Rovinescu, President and CEO of Air Canada. 

The acquisition of Aimia Canada remains subject to Aimia shareholder approval and certain other closing conditions, including receipt of applicable regulatory approvals. The closing of the acquisition is expected to occur in January 2019.

The aggregate purchase price consists of $450 million in cash subject to post-closing adjustments and includes the assumption of approximately $1.9 billion of Aeroplan Miles liability. Air Canada will receive payments from TD and CIBC in the aggregate amount of $822 million. Visa will also be making a payment to Air Canada.  In addition, TD and CIBC will make payments to Air Canada, at closing, in the aggregate amount of $400 million as prepayments to be applied towards future monthly payments in respect of Aeroplan miles.

Caution Regarding Forward-Looking Information
This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors. The acquisition of the Aeroplan loyalty business is subject to Aimia shareholder approval and certain customary and other conditions and there are no assurances that the acquisition will be completed as described in this news release or at all. Any forward-looking statements contained in this news release represent expectations as of the date of this news release and are subject to change after such date. However, except as required under applicable securities regulations, any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, is disclaimed

 

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I count about $1.4 billion-plus in upfront cash for AC, only part of which seems to be prepayment for future purchases of Aeroplan miles. 

Pretty sweet deal.

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2 hours ago, dagger said:

I count about $1.4 billion-plus in upfront cash for AC, only part of which seems to be prepayment for future purchases of Aeroplan miles. 

Pretty sweet deal.

How about directing some of this windfall toward indexing pensions for the many employees(retirees) that built this empire and held it afloat when it was full of holes?

Just saying............. 🙈🙉🙊

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Acquisition of Aeroplan Loyalty Business by Air Canada Clears Regulatory Requirements

Provided by Air Canada/CNW

air_canada_logo.jpg?w=1024

MONTREAL, Dec. 24, 2018 /CNW Telbec/ – Air Canada today announced that the acquisition of Aimia Inc.’s (“Aimia”) Aeroplan loyalty business has cleared regulatory requirements, following the receipt of the required confirmation under the Canada Transportation Act and a “no action letter” issued by the Canadian Competition Bureau. This follows the conclusion of the definitive share purchase agreement with Aimia for the acquisition of Aimia Canada Inc. (“Aimia Canada”), owner and operator of the Aeroplan loyalty business. 

Concurrently with the signing of the share purchase agreement announced Nov. 26, 2018, Air Canada, The Toronto-Dominion Bank (“TD”), Canadian Imperial Bank of Commerce (“CIBC”), and Visa Canada Corporation (“Visa”) signed various commercial agreements relating to and in support of the acquisition, including credit card loyalty program and network agreements for future participation in Air Canada’s new loyalty program, all of which are conditional upon closing of the acquisition of Aimia Canada.  Additionally, Air Canada remains in negotiations with American Express, which also issues Aeroplan co-branded products, to secure its continued participation in the Aeroplan program after 2020.

The aggregate purchase price for the acquisition of Aimia Canada consists of $450 million in cash subject to post-closing adjustments and includes the assumption of approximately $1.9 billion of Aeroplan Miles liability. Air Canada will receive payments from TD and CIBC in the aggregate amount of $822 million. Visa will also be making a payment to Air Canada.  In addition, TD and CIBC will make payments to Air Canada, at closing, in the aggregate amount of $400 million as prepayments to be applied towards future monthly payments in respect of Aeroplan miles.

The closing of the acquisition, expected to occur in January 2019, remains subject to the satisfaction of customary conditions as well as Aimia shareholder approval which will be sought by Aimia at its special meeting of shareholders scheduled for January 8, 2019.

Caution Regarding Forward-Looking Information

This news release includes forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors. The acquisition of the Aeroplan loyalty business is subject to Aimia shareholder approval and certain customary conditions and there are no assurances that the acquisition will be completed as described in this news release or at all. Any forward-looking statements contained in this news release represent Air Canada’s expectations as of the date of this news release and are subject to change after such date. Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

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Aimia’s Shareholders Approve Sale of Aimia Canada to Air Canada and Reduction of Stated Capital

 
‎Today, ‎January ‎8, ‎2019, ‏‎47 minutes ago | Peter Muir

Provided by AIMIA/CNW

aimia-EN_112091.jpg

MONTREAL, Jan. 8, 2019 /CNW Telbec/ – Data-driven marketing and loyalty analytics company Aimia Inc. (TSX: AIM) (“Aimia”) today announced that, at its special meeting of common and preferred shareholders (the “Meeting”), shareholders voted to approve the two special resolutions previously announced regarding:

air_canada_logo.jpg?w=218&h=28
  • the sale to Air Canada of all of the issued and outstanding share capital of Aimia Canada Inc. (“Aimia Canada”), the owner and operator of the Aeroplan loyalty program (the “Transaction”); and
  • the reduction of the stated capital of Aimia’s common shares to an aggregate amount of not less than $1,000,000pursuant to subsection 38(1) of the Canada Business Corporations Act (the “Stated Capital Reduction”).

The resolution regarding the Transaction was approved by holders representing 96% of Aimia’s common shares and preferred shares who voted on the Transaction on a combined basis and the resolution regarding the Stated Capital Reduction was approved by holders representing 78% of Aimia’s common shares who voted on the resolution regarding the Stated Capital Reduction. Final voting results of the Meeting will be filed with the Canadian securities regulators at www.SEDAR.com.

With all regulatory and shareholder approvals now having been obtained, Aimia expects the Transaction to close in the coming days.

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TD and Air Canada Enter into Air Canada Credit Card Loyalty Program Agreement Français

 


News provided by

TD Bank Group

Jan 10, 2019, 08:46 ET

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TORONTO, Jan. 10, 2019 /CNW/ - Further to the announcement of Air Canada completing its acquisition of Aimia Canada Inc., The Toronto-Dominion Bank ("TD") confirmed today that the previously announced long-term loyalty program agreement with Air Canada (the "Loyalty Agreement") has been entered into and is now effective. Under the Loyalty Agreement, TD will be the primary credit card issuer for Air Canada's new loyalty program when it launches in 2020.

"This agreement is a key milestone, providing our customers with confidence and continuity, while securing the long-term stability of a great travel program with our Canadian national carrier," said Katy Boshart, Senior Vice President, Canadian Credit Cards. " Customers can look forward to a refreshed and exciting program and we're thrilled to continue offering our customers value and a wide range of cardholder benefits in 2020."

With the Loyalty Agreement now in effect, customers can continue to earn and redeem Aeroplan Miles as they do today and existing Aeroplan Miles will be honoured on a one-to-one basis in the new Air Canada program.

For additional details on the agreement, please refer to the press release dated November 26, 2018, available here and at http://td.mediaroom.com.

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