Aimia has signed an agreement with an Air Canada-led consortium to divest its Aeroplan loyalty business for a cash consideration of $450m.

The consortium also includes Visa Canada, Toronto-Dominion Bank (TD) and Canadian Imperial Bank of Commerce (CIBC).

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In addition to the cash payment, the agreement involves nearly $1.9bn of Aeroplan Miles liability.

The deal is expected to offer value for Aimia and its shareholders, while providing continuity for Aeroplan members and customers of Air Canada, TD, CIBC and Visa.

Aeroplan members will be able to transfer their points to a new loyalty programme that Air Canada intends to launch in 2020.

Air Canada president and CEO Calin Rovinescu said: “This transaction, if completed, should produce the best outcome for all stakeholders, including Aeroplan members, as it would allow for a smooth transition to Air Canada’s new loyalty programme launching in 2020, safeguarding their miles and providing convenience and value for millions of Canadians.”

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Initially, the consortium made a proposal to buy the Aeroplan loyalty business for a cash payment of $250m.

Earlier this month, Aimia announced that constructive discussions were ongoing with the consortium. At the time, the offer was raised from $250m to $325m and later updated to $450m.

The acquisition is subject to the satisfactory conclusion of definitive transaction documents, Aimia shareholder approval and customary regulatory approvals.

It may also be impacted by the consortium’s completion of agreements on the credit card loyalty programme and network for future participation in Air Canada’s new loyalty programme.