Aimia Inc. says it will buy back 22.9 per cent of its outstanding shares at a price of $4.30 apiece under a plan announced last month.
The loyalty-rewards company says it will buy back roughly 34.9 million shares, reducing its issued and outstanding shares to about 117.4 million.
Aimia said last month it would spend up to $150-million to buy back stock under a “modified Dutch auction.”
By buying back its shares, a company spreads its profit over fewer shares. That increases its return on equity and earnings a share, two key ratios used to determine a company’s financial health.
The company says shares tendered to the offer but not repurchased will be returned to shareholders.
Aimia sold its Aeroplan loyalty program earlier this year to Air Canada.