Business
Air Canada : Finalizes Terms of $800 Million Substantial Issuer Bid
Air Canada : Finalizes Terms of $800 Million Substantial Issuer
About this update from Air Canada
MONTRÉAL, Aug. 17, 2026 (GLOBE NEWSWIRE) -- Air Canada (TSX: AC) today finalized the terms of its previously announced substantial issuer bid (the "offer") under which it will offer to purchase for cancellation up to $800 million of its Class A variable voting shares and Class B voting shares (collectively, the "shares").1 The offer will proceed by way of a "modified Dutch auction", allowing shareholders to tender all or a portion of their shares at a price ranging from $29.00 to $33.00 per share, in increments of $0.10 per share. The offer will be for up to 27,586,206 shares, or about 9.8% of Air Canada's 280,167,997 total issued and outstanding shares, assuming full participation and a purchase price equal to the minimum purchase price per share. The offer is expected to commence on August 20, 2026 and to expire at 11:59 p.m. (Eastern time) on September 24, 2026, unless extended, varied or withdrawn by Air Canada. The offer allows Air Canada to purchase its shares for cancellation at currently attractive valuations while maintaining its priority of investing in its growth and maintaining balance sheet strength. Air Canada will fund any share purchases under the offer using part of the proceeds from the recently announced minority equity investment in Aeroplan by funds managed by Blackstone and La Caisse, together with other leading Canadian institutions, which have today been received in full. Terms of the offer Under the terms of the offer, shareholders may tender their shares in one of two ways (i) an "auction tender" specifying the number of shares tendered at a price not less than $29.00 per share and not more than $33.00 per share, in increments of $0.10 per share, or (ii) a "purchase price tender" specifying the number of shares tendered, to be sold at the purchase price determined by the auction tender rather than at a specified price. Shareholders who tender shares in purchase price tenders will be deemed to have tendered such shares at the minimum price of $29.00 per share. Shareholders who tender shares without making a valid auction tender or purchase price tender will be deemed to have made a purchase price tender. The purchase price of all shares under the offer will be the lowest price that enables Air Canada to purchase the maximum number of shares pursuant to valid auction tenders and purchase price tenders having an aggregate purchase p...