Air Canada Parent Launches New Share Bid

February 11, 2009

Air Canada's parent company, ACE Aviation, said on Tuesday it launched a new CAD$84 million (USD$67 million) offer for its preferred shares as it seeks to complete the windup of its operations.

ACE said it aims to buy back 4.2 million outstanding preferreds at CAD$20 each, giving holders the opportunity to deposit their shares if they did not do so under the previous offer.

Major holder GLG Market Neutral Fund, which has 1 million, or 23.8 percent, of the outstanding preferreds, has agreed to tender all of them to the offer, which is open until March 19, ACE said.

ACE shareholders are scheduled to vote in April on the windup of the airline organization's holding company structure, a move that has been in the works for more than two years.

ACE plans to distribute its 75 percent interest in Air Canada, the country's biggest carrier, to its common shareholders. Major investor West Face Capital has said it will oppose the liquidation.