ACE Aviation Holdings Inc. agreed to sell a C$96.85 million ($94.7 million) stake in Jazz Air Income Fund, which controls regional carrier Jazz Air, trimming its share by more than half, to 9.5 percent.
Funds controlled by West Face Capital Inc. and Sunrise Partners LP will buy a total of 13 million units, Montreal-based ACE Aviation, the parent company of Air Canada (AC/A), said today in a statement.
ACE Aviation is paring its investments as Chief Executive Officer Robert Milton moves to wind up the holding company and return money to shareholders.
ACE retained a 23 percent interest in aircraft maintenance unit ACTS after selling a 70 percent stake to Kohlberg Kravis Roberts & Co. in June. ACE owns 75 percent of Air Canada and 20.1 percent of the Aeroplan Income Fund, which runs Air Canada's frequent-flyer loyalty program.
ACE fell C$1.54, or 5.9 percent, to C$24.40 at 4:10 p.m. in Toronto Stock Exchange trading. Jazz gained 23 cents, or 3.2 percent, to C$7.44.
Halifax, Nova Scotia-based Jazz Air operates regional flights in Canada and the U.S. in partnership with Air Canada.
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