Aimia Increases Share Buyback Target Up To $100 Million
(All figures in Canadian dollarsunless otherwise noted)
Toronto, March 6, 2023 – Aimia Inc. (TSX: AIM) has announced today that its Board of Directors has approved, subject to certain conditions, an increase in its share repurchase program with authorization to purchase up to $100 million of common shares of Aimia (inclusive of share buybacks completed in 2022), and in connection thereto, confirms its intent to renew its Normal Course Issuer Bid (“NCIB”) which is coming up for renewal in June 2023.
During 2022, Aimia bought back 8.3 million common shares on the open market, fully utilizing its most recent NCIB, for total repurchases in 2022 of $36.5 million. With this new target, $63.5 million remains available for additional repurchases.
The renewal of the NCIB in June will be subject to TSX approval and achieving the full $100 million share buyback target is subject to closing one or both external debt financings, both of which are actively progressing, for the previously announced Bozzetto and Tufropes acquisitions. Based on the share count on March 1, 2023, the renewal of the NCIB would represent the ability to purchase approximately 6.4 million additional common shares, representing approximately 10% of the public float of Aimia’s outstanding common shares. Once all permissible repurchases of common shares under the NCIB have been completed, Aimia will consider other buyback mechanisms to facilitate additional share repurchases to achieve the targeted remaining $63.5 million. Since 2020, Aimia has repurchased over 12.8 million common shares, reducing Aimia’s outstanding share count to 84.2 million.
Phil Mittleman, CEO of Aimia, said: “Having recently announced two exciting acquisitions that we believe will generate significant earnings, free cash flow and growth opportunities for our stakeholders, we intend to aggressively repurchase our common stock, which we see as significantly undervalued. We are increasing our previously stated target capital return target of $75 million, of which we have executed $36.5 million in open market purchases, to a new target of up to $100 million.”
Aimia Inc. (TSX: AIM) is a holding company with a focus on making long-term investments in public and private companies, on a global basis, through controlling or minority stakes.
The company owns a portfolio of investments which include: a 10.85% stake in Clear Media Limited, one of the largest outdoor advertising firms in China, a 48.8% equity stake in Kognitiv, a B2B technology company enabling collaborative commerce, a 10.8% equity stake in TRADE X, a global B2B cross-border automotive trading platform as well as a wholly owned investment advisory business, Mittleman Investment Management, LLC. Upon closing of the previously announced acquisition of Tufropes, and the recently announced acquisition of Bozzetto; Tufropes and Bozzetto will be added to the company’s portfolio of investments.
For more information about Aimia, visit www.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, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would” and “should”, and similar terms and phrases, including references to assumptions.
Forward-looking statements in this press release include, but are not limited to, statements with respect to the renewal of the NCIB, including TSX approval and the total number of common shares available for repurchased thereunder; the expectations and intentions with respect to the NCIB and Aimia’s repurchases thereunder or under any other buyback mechanisms; the closing of the Bozzetto acquisition and the Tufropes acquisition; the debt financing with respect to the Bozzetto and the Tufropes acquisitions; the earnings and cash flow to be generated by Bozzetto and Tufropes; the growth opportunities the Bozzetto and the Tufropes acquisitions will provide to our stakeholders.
Forward-looking statements, by their nature, are based on assumptions and are subject to known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the forward-looking statement will not occur. The forward-looking statements in this press release speak only as of the date hereof and reflect several material factors, expectations and assumptions. Undue reliance should not be placed on any predictions or forward-looking statements as these may be affected by, among other things, changing external events and general uncertainties of the business. A discussion of the material risks applicable to us can be found in our current Management 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. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and we disclaim any intention and assume no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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