Montreal-based investment management company Aimia announced that it will evaluate a takeover bid by its largest shareholder, Mithaq Capital. The Saudi family investment firm, owned by the Al Rajhi family, plans to launch an all-cash bid to acquire the remaining shares of Aimia at a price of C$3.66 per share ($2.67).
The offer price represents a premium to Tuesday’s closing price of C$3.07. Aimia’s stock has experienced a decline of almost 17% in 2023.
Mithaq Capital increased its ownership in Aimia from 19.99% to 30.96% in late May. The company argues that despite concerns expressed by some shareholders, Aimia’s board and management continue to pursue a misguided and misaligned business strategy.
Aimia previously raised concerns in April about Mithaq and its affiliates attempting to exert control over the company for their own self-interests. Aimia’s suspicions were sparked when it discovered that confidential documents had been improperly disclosed to Mithaq.
In response to Mithaq’s takeover proposal, Aimia has stated that it will consider the offer along with other options aimed at enhancing shareholder value. However, it is worth noting that Aimia is also pursuing legal action against Mithaq for alleged breaches of the Securities Act in Ontario. The trial is set to commence on January 8.