TORONTO, June 9, 2020 /CNW Telbec/ – Aimia Inc. (TSX: AIM) announces that it has successfully completed the sale of its entire diversified portfolio of publicly-traded equity securities, resulting in a substantial gain for stakeholders.
On April 2, 2020, Aimia announced the formation of an ad hoc investment committee comprised of members of the reconstituted Board and made amendments to its investment policy, as approved by the corporation’s newly reconstituted Board, to permit the company to invest in a diversified portfolio of public company securities, fixed income securities and hybrid securities.
Following this announcement, Aimia invested approximately $21 million in a diversified portfolio of public company securities as a result of the market dislocation caused by Covid-19. Aimia has now liquidated this investment portfolio, and received approximately $28 million in proceeds, realizing a tax sheltered gain of approximately $7 million. The company intends to use the gain from these proceeds towards Aimia’s latest Normal Course Issuer Bid (NCIB), to buy back up to 6,980,010 shares of Aimia’s common stock, which was announced yesterday.
Phil Mittleman, interim CEO, commented, "We are pleased to have utilized some of the company’s sizeable cash balance to generate tax sheltered gains for our stakeholders, capitalizing on the recent market dislocation and subsequent recovery. We intend to deploy these gains as partial funding of the company’s current NCIB, repurchasing up to 6,980,010 shares of Aimia’s common stock, at what we believe to be a significant discount to its current NAV, providing further accretion for stakeholders. While our primary focus will be on executing on the new strategy of acquiring long-term investments in public and private companies, on a global basis, through controlling or minority stakes, targeting companies with a well-established track record of substantial free cash flow generation, we will continue to evaluate all potential investments opportunistically."
Aimia Inc. (TSX: AIM) is an investment holding company with a focus on long-term investments in public and private companies, on a global basis, through controlling or minority stakes.
The company operates a loyalty solutions business, which is a well-recognized, global full-service provider of next-generation loyalty solutions for many of the world’s leading brands in the retail, CPG, travel & hospitality, financial services and entertainment verticals.
Aimia owns a 48.9% equity stake in PLM Premier, S.A.P.I. de C.V (PLM), owner and operator of Club Premier, the leading coalition program in Mexico, which it jointly controls with Aeromexico through its investment in PLM, and an investment alongside Air Asia in travel technology company BIGLIFE, the operator of BIG Loyalty, as well as a minority stake in Clear Media Limited, one of the largest outdoor advertising firms in China.
For more information about Aimia, visit corp.aimia.com
This press release contains statements that constitute "forward-looking information" within the meaning of Canadian securities laws ("forward-looking statements"), which are based upon our current expectations, estimated, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. In some cases, forward-looking statements are typically identified by the use of terms such as "outlook", "guidance", "target", "forecast", "assumption" and other similar expressions or future or conditional terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and "should". Forward-looking statements in this press release include, but are not limited to, statements with respect to our current and future plans, expectations and intentions with respect to the normal course issuer bid and Aimia’s repurchases thereunder and the timing of such repurchases.
Such forward-looking statements are not guarantees of future events or performance and by their nature involve known and unknown risks, uncertainties and other factors, including those risks described in our current Management and Discussion and Analysis and Annual Information Form (each of which have been or will be filed on SEDAR and can be accessed at www.sedar.com), and the failure to realize anticipated benefits of the normal course issuer bid, that may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, other factors may cause actions, events or results to be different than anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could vary or differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements contained herein.
SOURCE Aimia Inc.
Contact: Investors, Analysts, and Media: Tom Tran, Director, Investor Relations, (647) 329-5128, firstname.lastname@example.org