Air Canada Offer to Buy Transat AT Accepted By Board
CBJ — Air Canada’s $520 million offer to acquire Transat AT has been approved by Transat’s board, but it’s not yet set in stone on word some major shareholders don’t want the acquisition to take place — at least not at the price of $13 per share.
Under the proposed agreement, Air Canada plans to preserve the Transat and Air Transat brands and keep the Transat head office in Montreal.
Transat’s board of directors turned down a rival bid by Group Mach in favour of the deal tabled by Air Canada.
Letko, Brosseau and Associates and PenderFund Capital Management, which jointly own about 21% of Transat AT, have said they would vote against the agreement if the purchase price remained at $13 per share. It’s believed Group Mach was offering $14 per share.
The agreement requires approval from two-thirds of Transat shareholders to be finalized.