Author Topic: AIM.TO - Aimia  (Read 101742 times)


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Re: AIM.TO - Aimia
« Reply #390 on: May 15, 2019, 05:01:08 AM »
There continues to be potential closing of the mismatch between value and quoted securities along the capital structure with potential catalysts and the main risk being that the company continues to burn cash during the 'transformation'.

The Mittleman brothers' standstill agreement ends in early July and the recent bid for WestJet by Gerry Schwarz-led Onex raises the possibility that the new entity's loyalty unit may involve part or all of Aimia somehow.

For PLM valuation purposes, in 2003, Mr. Schwarz had offered a conservative offer for 35% of Aeroplan ("gem") with a 1.2x gross billings and 8x EBITDA parameters. PLM's gross billings for 2019 should be around 260M (USD) and EBITDA should be around 85M (USD). PLM is comparable to Aeroplan but differs in its growth prospects which more than compensate expected declining EBITDA margins. With a slight control premium, Aimia's stake in PLM should be worth between 350 to 450M (CDN).

Also, the Cardlytics stake has been going up in value on strong results and wonder if Mr. Mamdani will remain a passive investor.