TORONTO — Mithaq Capital SPC says it's dropping its hostile takeover offer for Aimia Inc. after not enough shares were tendered before the bid expired on Thursday.

As a result, no shares were acquired under the proposal and any shares that had been deposited under the bid will be returned, the company says.

However, Mithaq says it still has concerns with the strategic direction of the company and is evaluating all options available to it in connection with Aimia's upcoming annual meeting of shareholders.

Mithaq, a segregated portfolio company and affiliate of Mithaq Holding Co., a family office based in Saudi Arabia, is Aimia's largest shareholder with a 28 per cent stake in the company.

It had offered $3.66 per share in cash for the stake in Aimia it does not already own.

However, Aimia recommended shareholders reject the offer because it said it undervalued the company and was not compelling.

This report by The Canadian Press was first published Feb. 16, 2024.

Companies in this story: (TSX:AIM)

© 2024 The Canadian Press. All rights reserved., source Canadian Press DataFile