ACE Aviation: Deutsche Bank Securities Acquires Shares

Deutsche Bank Securities Ltd. (DB) announced it has acquired 4,635,270 Class A variable voting shares of ACE Aviation Holdings Inc. (ACEAF.PK) , becoming the second large financial company to jump on board the parent company of Air Canada (AIDIF.PK) in the past week.

Deutsche's holdings are comprised of 3,893,700 Class A shares, representing 9.66% of all outstanding Class A shares, and $19-million of ACE's 4.25% convertible senior notes due in 2035, which can be converted currently into 741,570 additional Class A shares. When adjusted for the convertible securities, Deutsche's total ACE holdings represent 11.3% of the class.

Deutsche said the acquisition of the class A shares and notes was for investment purposes only.

Last week, Royal Bank of Canada (RY) acquired 50,000 Class B voting shares in the holding company, valued at C$1.09-million based on the closing price of C$21.80 a share Wednesday on the Toronto Stock Exchange.  RBC now holds 834,702 shares in ACE, or 5.27% of outstanding class B shares.

RBC said the acquisition was part of its ongoing hedging activity “and not with the purpose or effect of influencing or changing control of ACE,” the bank said in a statement.

ACE, which was formed in 2004 as Air Canada emerged from bankruptcy protection, plans to completely unwind itself within the next three to six months, management says, after unloading its remaining stake in its frequent flyer program, Aeroplan, and its regional carrier, Jazz, last month.