A consortium consisting of Air Canada, TD, CIBC and Visa have offered to purchase the Aeroplan loyalty program from parent company Aimia for an estimated $2.25 billion CAD.
According to a July 25th, 2018 media release, the consortium is offering $250 million in cash, and is also willing to take Aeroplan points liability as of March 31st, 2018, worth approximately $2 billion CAD.
The group has set an offer expiry date of August 2nd, 2018, stating that they expect a “prompt response from Aimia regarding the proposal.”
“If completed, the Proposed Transaction would result in a positive outcome for Aimia shareholders and Aeroplan members, allowing for a smooth transition of Aeroplan members’ points to Air Canada’s new loyalty program launching in 2020, safeguarding their points and providing convenience and value for millions of Canadians,” reads an excerpt from the same July 25th media release.
The proposed figured is based on a $3.64 per share value of Aimia’s common stock, as well as a 52.3 percent volume weighted average price (VWAP) premium and a 45.6 percent premium to spot closing price as of July 24th, 2018.
Aeroplan recently announced that it plans on renewing its multi-year partnership with Carrot Rewards.
If Aimia accepts the consortium’s offer, the Aeroplan loyalty program would return to Air Canada.
The program was originally launched in 1984 as Air Canada’s frequent flyer program. It was spun off into its own company in 2002.
In 2017, Air Canada announced plans to launch a new loyalty program that would ultimately replace the Aeroplan program by 2020.
Aimia’s stock sits at $2.50 CAD at the time of writing, while Air Canada’s stock sits at $22.09.