TORONTO — The largest shareholder of Aimia Inc. says it has become disillusioned and frustrated by the company's board and management team, so it plans to make a bid to take Aimia private in a deal that would value the company at about $308 million.
Under the proposal, Mithaq Canada Inc., a wholly-owned subsidiary of Mithaq Capital SPC, says it intends to offer $3.66 per share in cash for the stake in Aimia it does not already own.
Aimia shares closed up 44 cents, or about 14 per cent, at $3.51 on the Toronto Stock Exchange Wednesday.
Mithaq said it has tried to engage in talks with the Aimia board and management team.
"However requests for such engagement have in some cases been rejected and, when discussions have taken place, any feedback that Mithaq has provided has been largely ignored," the company said in a statement.
Aimia, which sold its flagship Aeroplan loyalty program to Air Canada in 2019 and reinvented itself as an investment holding company, said when it receives a formal offer, it will review the proposal with its legal and financial advisers.
"Shareholders can rest assured that we take this duty seriously and will rigorously evaluate the proposed offer once it is received and make a recommendation consistent with our mandate to consider all reasonable stakeholder interests and maximize value," Aimia interim chair Karen Basian said in a statement.
Aimia noted it is currently suing Mithaq for alleged breaches of the Securities Act with a trial scheduled to begin on Jan. 8, 2024.
Mithaq is a segregated portfolio company and affiliate of Mithaq Holding Co., a family office based in Saudi Arabia.
It says it already owns or exercises control or direction over a 30.96 per cent stake in Aimia.
The company voted against the re-election of Aimia's board of directors at its annual meeting earlier this year.
This report by The Canadian Press was first published Oct. 4, 2023.
Companies in this story: (TSX:AIM)
The Canadian Press
Note to readers: This is a corrected story. An earlier version stated an offer had been made.