by Jen Mallia
Last updated: 1:05 PM ET, Tue August 18, 2026
Air Canada has finalized the terms for its substantial issuer bid, announcing to shareholders it will buy back up to 27,586,206 shares or a value of $800 million. A substantial issuer bid is a way for businesses to purchase a large portion of shares and cancel them (in this case, approximately 9.8 percent of the total shares) at a rate above market value to distribute cash to shareholders. The airline explains that this offer will allow Air Canada to purchase its shares for cancellation at “currently attractive valuations while maintaining its priority of investing in its growth and maintaining balance sheet strength.”
Air Canada stated it will fund any share purchases under the offer using part of the proceeds from the recently announced minority equity investment in Aeroplan by funds managed by Blackstone and La Caisse, together with other leading Canadian institutions.
The offer opens Aug. 20 and will run until Sept. 24, 2026. Shareholders will be able to sell some or all (or none) of their shares for between $29.00 and $33.00. The sale will be organized as a “modified Dutch auction” where shareholders set their minimum price (at increments of $0.10) for Air Canada to buy.
The airline stated that the purchase price of all shares under the offer will be the lowest price that enables Air Canada to purchase the maximum number of shares pursuant to valid auction tenders and purchase price tenders having an aggregate purchase price not to exceed $800 million.
If you are a shareholder who holds shares through an investment dealer, stock broker, bank, trust company or other nominee, and want to tender a sale offer, you should contact your nominee. Air Canada notes that “Such shareholders should confirm with such nominee whether any fees will be charged in relation to tendering shares on their behalf and any deadlines by which they must provide tender or deposit instructions, as the relevant deadlines set by such nominee may be earlier than the deadlines set forth in the offer documents.”
Shareholders who have questions with respect to the offer, or require any assistance with respect to the offer, including how to tender or deposit shares pursuant to the offer, may contact the dealer manager by email at [email protected] or the depositary by telephone at +1-800-387-0825 (toll-free in North America) or at (416) 682-3860 or by email at [email protected].
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