Aeroplan-owner Aimia selling Nectar loyalty program for $105M to U.K.'s Sainsbury

Aimia Inc. said Thursday ithas sold its Nectar loyalty program to U.K. supermarket group J SainsburyPLCfor approximately$105 million.

Sainsburyhas been part of the Nectarprogram since it launched in 2002, and has businesses covering the grocery, financial services, energy, clothing, and general merchandise sectors. The U.K. firm is also Nectar's largest issuance and redemption partner.

Montreal-based Aimiasaid selling Nectar will allow it to focus on the Aeroplanprogram ahead of the departure of partner Air Canada, which has said it will launch its own loyalty program in 2020.

"The transaction allows for a sharper focus on Aeroplan, our largest and most profitable business, and simplifies ouroperations all the while preserving a robust balance sheet for our ongoing business," David Johnston, Aimia's group chief executive, said in a release.

Aimiashares came under selling pressure in the wake of the sale's announcement. The stock closed down93cents at $2.78on the Toronto Stock Exchange.

Aimia is scheduled to report its fourth-quarter earnings on February 14.