Air Canada Increases Bid for Transat with Support from Largest Shareholder

By Jesse Sokolow on 12 August 2019
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Air Canada's new Maple Leaf Lounge at LGA

Air Canada’s new Maple Leaf Lounge at LGA

Air Canada announced it will raise its takeover offer for Transat A.T. following pressure from large Transat investors who demanded more for their stakes in the Canadian leisure airline and tour operator.

The company said that its new offer of $18 a share or $720 million – an increase from the original $13 a share offer – had the support of Transat’s largest shareholder, Letko Brosseau and Associates, which controls close to 20% of the company.

“After extensive consultations with Letko Brosseau and several other large shareholders of Transat, we agreed to materially increase our price to ensure the transaction receives the necessary level of support,” said Calin Rovinescu, Air Canada’s CEO.

When the deal originally announced in June, Air Canada said it will result in a “global leader in leisure, tourism and travel distribution.”  Air Canada’s offer for $13 a share was followed by a rival offer from Quebec developer Group Mach of $14 a share.

The deal, which is subject to regulatory approval in Canada and Europe, is also subject to a two-thirds approval from Transat shareholders at a meeting on August 23.

(Photo: Accura Media Group)

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