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Aimia And Grupo Aeromexico Announce Agreement In Principle

Stocks in this article: AIM

Aimia to acquire from Grupo Aeromexico an additional 20% equity participation in Premier Loyalty & Marketing, owner and operator of Club Premier, Mexico's leading coalition loyalty program

MONTREAL and MEXICO CITY, Oct. 29, 2012 /CNW Telbec/ - (TSX: AIM) (BMV: AEROMEX.MEX)

Aimia Inc. ("Aimia") and Grupo Aeromexico ("Grupo Aeromexico" or "Aeromexico"), S.A.B. de C.V. are pleased to report that they have reached an agreement in principle in connection with the acquisition by Aimia of an additional 20% equity participation in Premier Loyalty & Marketing, S.A.P.I. de C.V. ("PLM"), owner and operator of Club Premier, Mexico's leading coalition loyalty program.

PLM's fair value has been established at US$518 million and Aimia will pay US$88 million, which includes a discount agreed to at the time of Aimia's initial investment in PLM in September of 2010.  The transaction is subject to customary closing conditions, including the execution of definitive agreements and Mexican regulatory approvals, and is expected to close before the end of 2012.

After closing, Aimia's and Grupo Aeromexico's equity participations in PLM will approximate 49% and 51%, respectively.

Aimia and Grupo Aeromexico will continue their close collaboration and support of PLM's management team in the execution of their strategy to enable PLM to achieve its full potential as Mexico's leading coalition loyalty program.

"PLM's exceptional performance is the result of a strong partnership at the shareholder level and flawless execution by its very talented management team," said Rupert Duchesne, Group Chief Executive of Aimia. "We are thrilled with PLM's progress over the last two years. This provides clear evidence of the strength and portability of the Aeroplan-derived business model. The success of this partnership confirms our strategic vision in entering this important market and choosing the right partner in Grupo Aeromexico, the undisputed leading Mexican carrier." added Duchesne.

Andrés Conesa, Chief Executive Officer of Grupo Aeromexico added: "This transaction reflects Aimia's confidence, not only in PLM and in Grupo Aeromexico's future, but also in the favourable outlook for the Mexican economy and Mexico's consumer sector, which will fuel our future growth. By partnering with clear industry leaders, we have been able to create and unlock significant value for our shareholders."

RBC Capital Markets acted as advisor to Aimia in the transaction, while Citibank advised Grupo Aeromexico.

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