Aug 21, 2018, 8:23 am
Last edit by: yyznomad
For those of you interested only in the revised $450-million deal and related discussion, it starts on post 418:
https://www.flyertalk.com/forum/air-canada-aeroplan/1926409-update-aimia-accepts-air-canada-td-cibc-visa-revised-450-million-aeroplan-bid-28.html#post30109427
https://www.flyertalk.com/forum/air-canada-aeroplan/1926409-update-aimia-accepts-air-canada-td-cibc-visa-revised-450-million-aeroplan-bid-28.html#post30109427
Update: Aimia accepts Air Canada, TD, CIBC & Visa revised $450-million Aeroplan bid
Jul 25, 2018, 6:07 am
#1
Original Poster
Join Date: Sep 2016
Programs: AC SE, IHG Diamond
Posts: 51
Update: Aimia accepts Air Canada, TD, CIBC & Visa revised $450-million Aeroplan bid
Proposal by Air Canada, TD, CIBC and Visa to Acquire Aimia's Aeroplan Loyalty Business
Canada NewsWire
TORONTO, July 25, 2018
Benefits both Aeroplan members and Aimia shareholders- Allows for smooth transition of Aeroplan members' points to Air Canada's new loyalty program launching in 2020
- Provides value to all Aimia stakeholders and a viable solution to Aimia's current business and financial challenges
- Represents a total purchase price of $2.25 billion, including $250 million in cash and the assumption of approximately $2 billion of Aeroplan points liability
- Proposal implies approximate value of $3.64 per Aimia Inc. common share, a 52.3% 30-day VWAP premium and a 45.6% premium to spot closing price as of July 24, 2018, when added to value of Aimia's other assets 1
Last edited by bid.shader; Jul 25, 2018 at 7:16 am Reason: Change title for accuracy.
Jul 25, 2018, 6:20 am
#2
Join Date: Mar 2005
Location: Ottawa, ON
Programs: AC*SE100K, AC*MM, Marriott Platinum Elite
Posts: 286
Jul 25, 2018, 6:20 am
#3
Join Date: Jan 2016
Location: YYZ
Programs: FOTSG Tangerine Ex E35k (AC)
Posts: 5,612
Here’s the link; https://www.newswire.ca/news-release...689100461.html
And it’s not even April 1st. Popcorn time.
And it’s not even April 1st. Popcorn time.
Jul 25, 2018, 6:22 am
#5
Join Date: Mar 2005
Location: Ottawa, ON
Programs: AC*SE100K, AC*MM, Marriott Platinum Elite
Posts: 286
Fascinating line: "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."
So it doesn't sound like they necessarily want to operate the program, and certainly don't want to use it as the primary AC rewards program, just enable a smoother transition. Huh.
So it doesn't sound like they necessarily want to operate the program, and certainly don't want to use it as the primary AC rewards program, just enable a smoother transition. Huh.
Jul 25, 2018, 6:27 am
#6
Join Date: Jan 2014
Location: yyz
Posts: 1,611
Fascinating line: "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."
So it doesn't sound like they necessarily want to operate the program, and certainly don't want to use it as the primary AC rewards program, just enable a smoother transition. Huh.
So it doesn't sound like they necessarily want to operate the program, and certainly don't want to use it as the primary AC rewards program, just enable a smoother transition. Huh.
Jul 25, 2018, 6:27 am
#7
Join Date: Dec 2003
Location: Toronto, Ontario, Canada
Posts: 3,393
Not even a surprise. AC put Aimia in a vice, the latter's value fell, and now AC and the banks move in and get Aeroplan for a song. If it goes through, kudos to Calin for another smart move. He's disposed of all the Milton spinoffs except Jazz/Chorus at a very attractive price to AC shareholders. Call it shark-like predatory actions, but it's business and he will be remembered for doing it particularly well.
Jul 25, 2018, 6:30 am
#8
Join Date: Dec 2003
Location: Toronto, Ontario, Canada
Posts: 3,393
Fascinating line: "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."
So it doesn't sound like they necessarily want to operate the program, and certainly don't want to use it as the primary AC rewards program, just enable a smoother transition. Huh.
So it doesn't sound like they necessarily want to operate the program, and certainly don't want to use it as the primary AC rewards program, just enable a smoother transition. Huh.
I understand why CIBC and TD are involved, Visa's participation is interesting, because the CIBC and TD Aeroplan cards already were Visa. I'm trying to think how Visa could leverage this, or whether in discussions with Aimia, they felt like the latter was looking at credit card changes that would disadvantage Visa.
Jul 25, 2018, 6:31 am
#9
Join Date: Dec 2006
Location: Lima Sierra Zulu Hotel
Programs: AC*SM, M&M SEN, BA Gold, DL Gold; Marriott Titanium
Posts: 777
Jul 25, 2018, 6:57 am
#11
Join Date: Jan 2009
Location: YOW
Programs: AC-SE100K, AC-3MM, Marriott- LT Titanium, SPG RIP
Posts: 2,958
WOW.....just WOW!
There were many on this board saying AC should just buy AIMIA, but I did not think it would happen....The thought was that AC can start fresh and anew with their own program.
Obviously AC is not doing this out of the goodness of their hearts to help safeguard current AP members points LOL ...from the release "... 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"
AC has obviously, along with the banks and VISA, seen a way to turn this into money for their shareholders. It would be interestingto see their financial models and their assumptions...
There were many on this board saying AC should just buy AIMIA, but I did not think it would happen....The thought was that AC can start fresh and anew with their own program.
Obviously AC is not doing this out of the goodness of their hearts to help safeguard current AP members points LOL ...from the release "... 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"
AC has obviously, along with the banks and VISA, seen a way to turn this into money for their shareholders. It would be interestingto see their financial models and their assumptions...
Jul 25, 2018, 7:00 am
#12
Original Poster
Join Date: Sep 2016
Programs: AC SE, IHG Diamond
Posts: 51
Upon further reading, seem's it's not a buy of AIMIA but a buy of the Aeroplan program itself. Of course, it's not obvious that AIMIA is a going concern afterwards, so it might not be much of a difference...interesting to see how AIMIA responds.
Jul 25, 2018, 7:04 am
#14
Join Date: Mar 2001
Location: Toronto, ON
Programs: AC 75K
Posts: 6,363
Also of note in the news release:
"The parties have requested a prompt response from Aimia regarding the proposal, which has an expiry date of August 2, 2018. The Proposed Transaction is subject to the satisfactory conclusion of transaction documents and certain other customary conditions, including due diligence, receipt of customary regulatory approvals and the negotiation and satisfactory completion of credit card agreements between Air Canada and each of TD and CIBC."
Given Visa's involvement too, I wouldn't be surprised if this idea was floated as part of the RFP response for AC's new credit card partner(s).
"The parties have requested a prompt response from Aimia regarding the proposal, which has an expiry date of August 2, 2018. The Proposed Transaction is subject to the satisfactory conclusion of transaction documents and certain other customary conditions, including due diligence, receipt of customary regulatory approvals and the negotiation and satisfactory completion of credit card agreements between Air Canada and each of TD and CIBC."
Given Visa's involvement too, I wouldn't be surprised if this idea was floated as part of the RFP response for AC's new credit card partner(s).
Jul 25, 2018, 7:07 am
#15
FlyerTalk Evangelist
Join Date: Feb 2004
Location: YVR
Programs: AC SE 2MM; UA MP Premier Silver; Marriott Bonvoy LT Titanium Elite; Radisson; Avis PC
Posts: 35,255