Aimia vows to fight Air Canada s court move to halt upcoming merger
|CTVnews 28 May 2020 at 23:03|
TORONTO -- Aimia Inc. says it plans to defend itself against a move by Air Canada in Quebec Superior Court to halt a merger that the smaller company sees as key to its corporate reinvention.
The former owner of Aeroplan -- a rewards program that Aimia sold to Air Canada last year -- says Air Canada has filed an application for an injunction against Aimia s proposed merger of its money-losing loyalty points business with Kognitiv Corp.
The agreement, announced on April 29, would see Aimia s Loyalty Solutions brand join forces with the Waterloo, Ont.-based tech company to form a new entity called Kognitiv, leaving Aimia with a 49 per cent stake in the spinoff.
Aimia says Air Canada s court filings allege that the transaction will result in breaches of non-competition and confidentiality provisions that Aimia agreed to when it announced the $720-million Aeroplan sale in November 2018.
Aimia says it denies the allegations and calls Air Canada s court application "without merit and an abuse of process."
The Kognitiv deal, slated to close the week of June 8, forms part of Aimia s plan to cast off its past as a rewards points company and reshape itself as an investment manager under an overhauled board following a tumultuous two years of shareholder unrest and litigation.