Aimia Inc. (TSX: AIM) has announced it has signed a Letter of Intent with Grupo Aeromexico S.A.B. de C.V. (BMV: AEROMEX), reflecting an agreement in principle to negotiate certain changes to the shareholders agreement between them and the commercial agreement (CPSA) between Aeromexico and loyalty program PLM Premier, S.A.P.I. (PLM), the company said.
These changes, which would include a 20-year extension to the CPSA and result in a termination date for the contract of September 13, 2050, are intended to strengthen the relationship between Aeromexico and PLM, to grow and improve the program, and align PLM shareholder interests regarding PLM profitability and value.
As part of the proposed transactions, PLM will, from cash on its balance sheet, provide financial support to Aeromexico of USD 100 million in the form of a USD 50 million loan under the existing intercompany loan facility and through pre-purchases of award tickets of USD 50 million. Subject to market conditions, Aimia and Aeromexico will explore alternatives to strengthen PLM´s balance sheet and enhance distributions to shareholders.
Aimia and Aeromexico have also agreed in principle regarding modifying the Shareholders Agreement to grant Aeromexico a 7-year option to purchase Aimia´s 48.9% equity interest in PLM at an Adjusted EBITDA multiple of 7.5x, with a minimum floor of USD 400 million for Aimia´s stake, subject to final agreement on certain terms and conditions.
Aimia Inc. 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.