Blackstone and La Caisse are leading a C$2.5 billion ($1.8 billion), minority equity investment in Air Canada’s Aeroplan, which operates Canada’s leading travel loyalty program.
The investor group, which also includes PSP Investments and British Columbia Investment Management Corp., is acquiring a 25 percent noncontrolling equity interest in Aeroplan, valuing the program at C$10 billion ($7 billion). After the transaction closes, Air Canada will retain a 75 percent ownership interest and will continue to control Aeroplan and its operations, strategic direction and day-to-day management.
Proceeds from the deal will primarily allow Air Canada to repay its upcoming $1.2 billion debt maturity with most of the balance applied to accelerate share repurchases, including through a substantial issuer bid for up to $800 million ($574 million) in shares.
“Air Canada has established Aeroplan as one of Canada’s leading loyalty programs, with strategic partnerships ac
