Air Canada expects to repurchase $800 million of its own shares

Air Canada says preliminary results from its substantial issuer bid point to the repurchase of roughly 27.6 million shares at $29 each, for a total of about $800 million.

Investors tendered approximately 66.8 million shares, well above the number the airline expects to accept. That means participating shareholders will have their tenders prorated under the terms of the offer.

The expected repurchase represents about 9.8 per cent of Air Canada's outstanding shares. The company says the transaction is financed with proceeds from a minority investment in Aeroplan by Blackstone, Caisse de dépôt, and other Canadian institutions.

Air Canada framed the buyback as part of a disciplined capital-allocation plan that reduces its share count toward pre-pandemic levels while preserving investment in its New Frontiers strategy.