Aimia investor says it will vote against re-election of board nominees

MONTREAL -- A U.S. investor of Aeroplan operator Aimia Inc. says it plans to vote against the re-election of the company's board of director nominees at this month's annual meeting.

22NW Fund LP of Seattle blames the loyalty rewards company's poor performance and plummeting share price directly on the board's actions, including the "botched" Air Canada renegotiation and the sale of the British program Nectar to retailer Sainsbury.

The fund says it owns about 4.3 million shares or about three per cent of Montreal-based Aimia.

In a news release, the fund says it will vote against chairman Robert Brown and CEO David Johnston along with directors Roman Doroniuk, Thomas Gardner, Emma Griffin, Robert Kreidler and William McExan.

It will support new director nominees Brian Edwards, Philip Mittleman and Jeremy Rabe.

Fund manager Aron English says that despite "world-class assets and a strong financial position," the board has "managed to wipe out over 80 per cent Aimia's equity value in less than a year."

It noted that Aimia has a policy that nominees receiving less than half of votes cast is required to immediately tender his or her resignation.

English threatened to take undisclosed action if the board attempts to confuse or avoid this policy requirement.

Aimia didn't immediately respond to a request for comment.

The company averted a battle with its largest shareholder in late March after reaching an agreement with Mittleman Brothers Investment Management, which owns nearly 15 per cent of Aimia.

As part of the deal, the chief executive and president for Mittleman Brothers LLC and Rabe, a managing partner with On Point Loyalty, were nominated to the board and signed a standstill agreement.

Mittleman has agreed that until July 1, 2019 it won't take any actions against Aimia, including soliciting proxies, voting any shares, calling a special meeting, proposing the removal of board members, engaging in short selling or making disparaging comments about the company.

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