Third-quarter profit at ACE Aviation Holdings Inc, Air Canada's parent company, more than doubled as the country's biggest airline boosted income and cut costs while results at its other divisions improved, ACE said on Friday.
ACE executives also said they aim to wind up the holding company in about six months, likely after distributing the remaining stakes in its operating units to shareholders or selling them in secondary offerings.
The interests in Air Canada, its regional affiliate Jazz Air, loyalty program Aeroplan and aircraft maintenance firm ACTS are worth about C$2.4 billion ($2.6 billion), said ACE, which was created as part of Air Canada's emergence from bankruptcy protection in late 2004.
ACE also has C$1.85 billion of cash, and plans to return that to investors as well, either through direct payouts or large stock buybacks, Chief Executive Robert Milton said.
The holding company has been reducing interests in its operating companies for more than two years. Last month it completed the C$723 million sale of a majority stake in ACTS to private equity players Sageview Capital and Kohlberg Kravis Roberts & Co [KKR.UL].
ACE's windup does not require shareholder approval. Milton said it is likely the remaining interests will be dealt with along the same lines as its previous asset reductions. |
