Aimia Details Bozzetto Sale, Targets C$265M+ Proceeds for Debt Paydown and New Acquisitions

Aimia (TSE:AIM) executives outlined plans to reshape the company’s equilibrium expanse and concern strategy aft announcing the signing of a definitive statement to merchantability its Bozzetto business. On a league call, Executive Chairman Rhys Summerton and President and CFO Steven Leonard described the transaction economics, expected closing timeline, and the company’s intended usage of proceeds, with an accent connected indebtedness simplification and aboriginal acquisitions.

Management said the Bozzetto merchantability is expected to make nett proceeds successful the scope of CAD 265 cardinal to CAD 271 million astatine closing. Summerton said the institution anticipates closing within the adjacent 3 months, taxable to customary conditions, including regulatory approvals.

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Leonard noted that the acquisition statement is denominated successful euros and that the Canadian-dollar proceeds volition alteration with currency rates astatine closing. He said the institution is exploring currency hedging options. He added that last nett proceeds volition besides beryllium taxable to closing adjustments for nett indebtedness and moving capital.

On transaction terms, Leonard said Bozzetto is valued astatine an enterprise worth of CAD 411 cardinal (EUR 255 million), little CAD 117 million of nett debt, CAD 16.5 million of number interests, and conscionable nether CAD 10 million of transaction costs. He besides compared the valuation to Aimia’s acquisition price, saying Aimia acquired Bozzetto astatine an endeavor worth of EUR 227 million and is selling based connected closing conditions tied to an endeavor worth of EUR 250 million.

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Summerton acknowledged that Bozzetto had delivered accordant fiscal results during Aimia’s ownership, calling the question “why sell” a just one. He said the institution concluded it could maximize shareholder worth by monetizing the plus and redeploying the proceeds toward reducing holding-company indebtedness and acquiring different companies considered much undervalued.

Summerton besides highlighted structural considerations, including that Bozzetto’s geographic footprint constricted Aimia’s quality to usage its nett operating losses against taxable income, and that Bozzetto’s recognition facilities constrained the quality to upstream currency to the holding company. He said those limitations reduced flexibility to deploy superior for stock buybacks oregon investments successful different operating companies.

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On taxes, Summerton said that with much than CAD 500 million of superior taxation nonaccomplishment carryforwards arsenic of September 30, the institution does not expect paying taxes connected the summation from the transaction, and expects to commencement utilizing those losses “a small bit” successful this transaction. Later successful the call, helium besides referred to having implicit CAD 1 billion of taxation losses carried forward.