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ACE Aviation Holdings to sell 13M units of Jazz Air Income Fund for $96.9M

Jan. 16, 2008, Montreal - ACE Aviation Holdings Inc. continues to dismantle itself, announcing Wednesday it is selling 13 million units of Jazz Air Income Fund.


January 16, 2008
By The Canadian Press

Jan. 16, 2008, Montreal – ACE Aviation Holdings Inc. (TSX:ACE.B) continues to
dismantle itself, announcing Wednesday it is selling 13 million
units of Jazz Air Income Fund (TSX:JAZ.UN) at $7.45 per unit.

The $96.9-million sale to funds managed by Toronto-headquartered
West Face Capital Inc. and Sunrise Partners Limited Partnership will
leave ACE holding 9.5 per cent of Jazz Air, down from 20.1 per cent
now.

Units in the regional airline hit a new low of $7.13 Tuesday,
down from a 52-week high of $8.88 and a February 2006 issue price of
$10.00.

ACE also owns 75 per cent of Air Canada, 20.1 per cent of
Aeroplan Income Fund and 23 per cent of airliner maintenance
provider ACTS, formerly Air Canada Technical Services.

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The holding company, created in the 2004 bankruptcy restructuring
of Air Canada, has been spinning off stakes in its subsidiaries
while buying back its own stock.