- Mithaq demonstrates commitment to its premium Offer by
modifying certain conditions of the Offer
- Mithaq has filed a Notice of Variation in respect of the
changes to its conditions, which also provides updates to
Shareholders regarding recent developments relating to the
Offer
- In an Open Letter to Shareholders
and the Aimia Board, Mithaq re-emphasizes its desire to engage in
discussions with the Aimia Board
- Shareholders should continue to visit
www.cashpremiumforaimia.com for the latest
updates
TORONTO, Nov. 28,
2023 /CNW/ - Mithaq Capital SPC ("Mithaq"),
the largest shareholder of Aimia Inc. (TSX: AIM) ("Aimia"),
today filed a Notice of Variation and issued an Open Letter to
Shareholders and the Aimia Board (the "Open Letter").
The Open Letter urges Aimia's Board to engage productively with
Mithaq regarding the premium, all-cash offer made by Mithaq's
wholly-owned subsidiary, Mithaq Canada Inc. (the "Offeror"),
to acquire all of the issued and outstanding common shares of Aimia
Inc. (the "Common Shares") not already owned by the Offeror
or its affiliates, together with the associated rights issued and
outstanding under the shareholder rights plan of Aimia (the
"Original Offer" and as amended, the "Offer"), and
explains how Mithaq has modified the Offer by removing one
condition and varying another.
The Open Letter reads as follows:
November 28, 2023
Dear Aimia Shareholders and Board of Directors:
Re: Offer of Mithaq Canada Inc. for all the issued and
outstanding common shares of Aimia Inc.
On October 5, 2023, Mithaq Canada
Inc. (the "Offeror"), a wholly owned subsidiary of Mithaq
Capital SPC ("Mithaq"), commenced a premium all-cash offer
for all of Aimia Inc.'s ("Aimia") issued and outstanding
common shares (the "Common Shares") for C$3.66 per share (the "Offer"). The
fully-financed, cash Offer represents a premium of 20% over the
closing trading price of the shares on the TSX on October 2, 2023 (the last trading day prior to
the Offeror's announcement of its intention to commence the Offer)
and an approximate 28% premium to the share price on November 27, 2023, the last trading day prior to
the date of this letter.
At the time of our Offer, we sent a letter to the board of
directors of Aimia (the "Aimia Board") requesting reasonable
access to non-public information relating to Aimia's business and
operations, as well as access to members of Aimia senior
management, for purposes of completing our diligence. We also
communicated that we would also be open to discussing a friendly
transaction with the Aimia Board. Notwithstanding our constructive
outreach, Aimia's Board has yet to engage with us in a meaningful
or constructive manner.
Instead, the Aimia Board has focused its efforts on entrenching
itself and management, by diluting shareholders at a price well
below our Offer at the same time as saying our Offer was not a fair
price, and also feigning concern with reasonable Offer
conditions.
The Aimia Board is failing shareholders and attempting to
confuse them, while we're committed to doing the opposite for
fellow shareholders. That's why we are today simplifying our Offer
conditions to remove or amend items of purported concern.
Modifying Our Bid Conditions
Today we announced that we have revised some conditions of the
Offer, including:
- Removing the condition that all litigation relating
to Aimia or any of its affiliates and involving the Offeror or
any of its affiliates shall have been resolved. In short, we
believe that the allegations made by Aimia are without merit, are
solely designed to prevent the Aimia Board from being held
accountable and are doomed to fail at trial and, accordingly, that
the litigation is a waste of company resources. It is now clear
that the entrenched Aimia Board intends to continue its frivolous,
self-serving litigation, but we have decided to drop the
condition.
- Varying the due diligence condition contained in our original
Offer to limit our diligence request to the information and access
that has been provided to any potential acquiror of Aimia's
common shares (including the investors in Aimia's recent dilutive
private placement completed on October 21,
2023). It is reasonable and fair that we receive the same
access to Aimia's non-public information and management that Aimia
has provided to others. We also removed from the due diligence
condition the requirement that we be satisfied that such
information does not contain any facts that might make it
inadvisable for us to complete the Offer.
It's Time for the Aimia Board to Actually Represent the
Interests of the Company and Shareholders
It is nonsensical that Aimia's Board has repeatedly asserted
that our premium, all-cash Offer undervalues the company, while the
current trading price of the Common Shares is significantly below
the Offer price and the Aimia Board refuses to engage. Perhaps if
the Aimia Board were to constructively engage, we would find
ourselves in a position to determine whether an increase to the
Offer price is warranted.
Shareholders will never know what could have been if Aimia
doesn't provide us with reasonable access to confidential
information for purposes of conducting due diligence. We struggle
to understand how Aimia or its shareholders could possibly be
disadvantaged or prejudiced by our request for diligence access and
how the Aimia Board's continued resistance is in the best interests
of the company or its shareholders.
Today, we reemphasize our willingness to engage with the Aimia
Board in a productive manner and publicly resubmit our request for
due diligence access. We believe that is in the best interests of
Aimia and its shareholders and urge Aimia's Board to act in a
manner consistent with its duty to Aimia and its shareholders.
MITHAQ CAPITAL SPC
By: "Turki Saleh A.
AlRajhi"
Name: Turki Saleh A. AlRajhi
Title: Director
NOTICE OF VARIATION
The Offeror has filed a notice of variation to vary the terms of
the Offer by deleting the litigation condition and varying the due
diligence condition and provide information in respect of recent
developments relating to the Offer occurring after the date of the
Original Offer (the "Notice of Variation"). The Offer
remains subject to the conditions outlined in the Original Offer,
as amended by the Notice of Variation.
Shareholders are urged to read the Notice of Variation, which
has been filed on SEDAR+ under Aimia's profile at www.sedarplus.com
and will also be mailed to shareholders. The Notice of Variation
will also be available at www.cashpremiumforaimia.com. Aimia
securityholders are urged to read the Notice of Variation carefully
and in its entirety.
The Offer remains
open for acceptance until 11:59 p.m. (Vancouver Time) on January
18, 2024, unless the Offer is extended or withdrawn. The initial
deposit period under the Offer may be shortened in certain
circumstances.
|
ABOUT THE OFFER
The Offeror commenced the Offer and filed a take-over bid
circular (the "Mithaq Circular") and related documents with
the securities regulatory authorities in Canada on October 5,
2023. Shareholders are urged to read the Mithaq Circular and
the Notice of Variation as they contain important information,
including the terms and conditions of the Offer and the procedures
for depositing Common Shares. Additional information about the
Offer or copies of the Mithaq Circular, the Notice of Variation and
related documents may be obtained without charge on request from
Carson Proxy Advisors at the contact information below. The Mithaq
Circular and related documents filed by the Offeror are also
available on SEDAR+ at www.sedarplus.com.
This press release does not constitute an offer to buy or the
solicitation of an offer to sell any securities of the Offeror,
Mithaq or Aimia.
HOW TO TENDER
Shareholders are encouraged to tender their Common Shares
and realize immediate liquidity for their investment. If Common
Shares are held by a broker or other financial intermediary,
shareholders should contact that intermediary and instruct it to
tender their Common Shares. If Common Shares are held in registered
form, shareholders should complete the Letter of Transmittal
included in the documents mailed to them by the Offeror.
For shareholders whose certificate(s) or direct registration
system statement(s) ("DRS Statements") are not immediately
available or who cannot deliver the certificate(s) or DRS
Statement(s) and all other required documents to Olympia Trust
Company prior to the expiry time, they may accept the Offer by
properly completing and duly executing a Notice of Guaranteed
Delivery and returning it to Olympia Trust Company as specified in
the Notice of Guaranteed Delivery.
Shareholders with questions or in need of assistance
accepting the Offer can contact Carson Proxy Advisors by telephone
at 1-800-530-5189 (North American Toll-Free Number) or 416-751-2066
(outside North America) or by
email at info@carsonproxy.com.
EARLY WARNING DISCLOSURE
This press release is being issued pursuant to National
Instrument 62-103 – The Early Warning System and Related
Take-Over Bid and Insider Reporting Issues, which requires a
report to be filed under Aimia's profile on SEDAR+
(www.sedarplus.com) containing additional information respecting
the foregoing matters. Aimia's head office address is 176 Yonge
Street, 6th Floor, Toronto,
Ontario M5C 2L7.
Mithaq has filed on SEDAR+ an amended early warning report to
disclose changes in certain material facts relating to its
ownership of securities of Aimia, in compliance with National
Instrument 62-103 (the "Amended Report"). In the Amended
Report, Mithaq discloses, among other things, that the Offeror has
filed the Notice of Variation, and provides additional disclosure
to shareholders in light of certain allegations made by Aimia in
the Active Litigation (as defined in the Mithaq Circular).
The Amended Report further discloses that, in addition to the
Offer, Mithaq may continue to explore from time to time a variety
of alternatives it deems appropriate with respect to its investment
in Aimia, in each case to the extent permitted under applicable
law, including (i) increasing its position in Aimia through,
among other things, the acquisition of securities of Aimia, and/or
(ii) entering into transactions that increase or hedge its economic
exposure to such securities without affecting its beneficial
ownership of such securities.
Mithaq may also continue explore from time to time other
alternatives in addition to the Offer with respect to its
investment in Aimia, in each case to the extent permitted under
applicable law, including, but not limited to, developing plans or
intentions or taking actions itself or with joint actors which
relate to or would result in one or more of the transactions or
matters referred to in paragraphs (a) through (k) of Item 5 of the
Amended Report. For greater certainty, Mithaq may: (a) engage with
management and/or the board of Aimia concerning the foregoing and
its business, management, operations, capitalization, financial
condition, governance, strategy and future plans (including taking
any actions it deems appropriate to influence the affairs of
Aimia); (b) initiate or make public or private proposals or offers
involving Aimia, including (i) any takeover bid, amalgamation,
consolidation, acquisition, business combination, arrangement,
recapitalization, restructuring, liquidation, dissolution,
disposition of assets or other similar transactions involving Aimia
(including its subsidiaries and joint ventures or any of their
respective securities or assets), and (ii) any waiver, amendment or
modification to Aimia's articles of incorporation or by-laws; (c)
initiate, solicit or join as a party, any litigation, arbitration
or other proceeding (including regulatory proceedings) involving
Aimia or any of its subsidiaries or any of its or their respective
current or former directors or officers (including derivative
actions and exercising any dissent rights); (d) initiate, propose,
encourage, advise, influence or otherwise participate in the
solicitation of proxies with respect to the voting of any
securities of Aimia on any matter (including pursuant to any
available exemptions under applicable laws); (e) grant any proxy
with respect to the securities of Aimia; (f) engage in any short
sale or similar transaction that derives value from a decline in
Aimia's securities; (g) deposit any securities of Aimia into a
voting trust, or subject any securities of Aimia to any agreement
or arrangement with respect to the voting of such securities; (h)
(i) call, requisition or seek to call or requisition a meeting of
the shareholders of Aimia, (ii) seek election or appointment to, or
representation on, the board of Aimia or (iii) effect the removal
of any member of the board of Aimia or otherwise alter the
composition of the board of Aimia (including by voting against the
directors or through any "no vote" or similar campaign or proposing
nominees); (i) submit, or induce any person to submit, any
shareholder proposal; (j) enter into any agreement with Aimia
(including any settlement or resolution agreement); (k) retain any
advisors in furtherance of any of the foregoing; (l) make any
request for securityholder list materials or other books and
records of Aimia or any of its subsidiaries including under any
statutory or regulatory provisions providing for shareholder access
to such securityholder list materials, books and records of Aimia
or its subsidiaries; (m) enter into discussions, agreements or
understandings with any person with respect to or in contemplation
of the foregoing or advise, assist, support or encourage any person
to take any action consistent with the foregoing; and (n) make any
public disclosure of any consideration, intention, plan or
arrangement with respect to or in contemplation of any of the
foregoing.
Although the foregoing reflects activities presently
contemplated by Mithaq in addition to the Offer with respect to its
investment in Aimia, the foregoing is subject to a number of
factors, including but not limited to, the price of Aimia's
securities, Aimia's business and financial condition and prospects,
conditions in the securities markets and general economic and
industry conditions, the availability of funds, the evaluation of
other investment opportunities available to Aimia, and is subject
to change at any time, and there can be no assurance that Mithaq
will take any of these additional actions referred to above.
For further information, including a copy of the corresponding
report filed with Canadian securities regulators, please visit
www.sedarplus.com or contact Mithaq Capital SPC, Saudi Arabia, P.O. Box 86611, Riyadh 11632, Attention: Turki Saleh AlRajhi
(mithaq-capital@mithaqholding.com).
ABOUT THE OFFEROR
The Offeror is a wholly-owned subsidiary of Mithaq, the largest
shareholder of Aimia, holding 26,059,000 Common Shares representing
approximately 30.96% of the issued and outstanding Common Shares
(before giving effect to Aimia's recent private placement, which
Mithaq is challenging before the Capital Markets Tribunal of the
Ontario Securities Commission). Mithaq is a segregated portfolio
company and affiliate of Mithaq Holding Company, a family office
based in Saudi Arabia with investments in public
equities, real estate, private equity and income-producing assets
in local and international markets.
ADVISORS
Torys LLP is acting as legal advisor, Carson Proxy Advisors is
acting as information agent and FGS Longview is acting as
communications advisor to the Offeror and Mithaq in respect of the
Offer.
FOR MORE INFORMATION
Shareholders
www.cashpremiumforaimia.com
Carson Proxy Advisors
North American Toll Free: 1-800-530-5189
Collect Call Outside North America: 416-751-2066
info@carsonproxy.com
Media
Boyd Erman
FGS Longview
416-649-8007
berman@longviewcomms.ca
Joel Shaffer
FGS Longview
416-649-8006
jshaffer@longviewcomms.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This document contains "forward-looking statements" (as
defined under applicable securities laws). These statements relate
to future events or future performance and reflect the Offeror and
Mithaq's expectations, beliefs, plans, estimates, intentions, and
similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical
facts. Forward-looking statements include, but are not limited to,
statements regarding: the Offer and the Notice of Variation,
including the mailing of the Notice of Variation and any potential
increase to the Offer price; and statements regarding the ongoing
litigation between Mithaq and Aimia, and the Offeror's application
to seek regulatory remedies in respect of, among other things,
Aimia's private placement, as well as any unwinding of that private
placement, including the Offeror and Mithaq's expectations
regarding the Aimia Board's intentions with respect to the
litigation and the results of such litigation and such application.
Such forward-looking statements reflect the Offeror and Mithaq's
current beliefs and are based on information currently available.
In some cases, forward-looking statements can be identified by
terminology such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential",
"continue", "target", "intend", "could" or the negative of these
terms or other comparable terminology.
By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and a
number of factors could cause actual events or results to differ
materially from the results discussed in the forward-looking
statements. In evaluating these statements, readers should
specifically consider various factors that may cause actual results
to differ materially from any forward-looking statement. These
factors include, but are not limited to, market and general
economic conditions (including slowing economic growth, inflation
and rising interest rates) and the dynamic nature of the industry
in which Aimia operates.
Although the forward-looking information contained in this
document is based upon what the Offeror and Mithaq believe are
reasonable assumptions, there can be no assurance that actual
results will be consistent with these forward-looking statements.
The forward-looking statements contained in this document are made
as of the date of this document and should not be relied upon as
representing views as of any date subsequent to the date of this
document. Except as may be required by applicable law, the Offeror
and Mithaq do not undertake, and specifically disclaim, any
obligation to update or revise any forward-looking information,
whether as a result of new information, further developments or
otherwise.
Neither the Offeror, Mithaq, nor or any of their
subsidiaries, affiliates, associates, officers, partners,
employees, representatives and advisers, make any representation or
warranty, express or implied, as to the fairness, truth, fullness,
accuracy or completeness of the information contained in this
document or otherwise made available, nor as to the reasonableness
of any assumption contained herein, and any liability therefore
(including in respect of direct, indirect, consequential loss or
damage) is expressly disclaimed. Nothing contained herein is, or
shall be relied upon as, a promise or representation, whether as to
the past or the future and no reliance, in whole or in part, should
be placed on the fairness, accuracy, completeness or correctness of
the information contained herein.
SOURCE Mithaq Canada Inc.