Transat Agrees Air Canada Takeover Offer
Canadian tour company Transat has accepted Air Canada’s all-cash offer of CAD$520 million (USD$397 million) for the Montréal-based company.
The Transat board unanimously approved the CAD$13 per share offer, despite a higher bid from real estate developer Group Mach of CAD$14.
Transat’s chief executive Jean-Marc Eustache called the deal the best option for stakeholders, and an ideal platform for the company’s presence and jobs in Montréal.
“For our clients, it will offer even more choices and possibilities. For now, they can continue booking their flights and packages with complete confidence, as all bookings will be honoured before and after the closing of the transaction,” Eustache said.
Air Canada said it will keep the Air Transat and Transat brands and maintain the Transat head office and its key functions in Montréal.
Air Canada’s CEO Calin Rovinescu said customers “will benefit from the merged companies’ enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies.
“The Quebec economy will derive maximum advantage of having a Montreal-based, growth-oriented global champion in aviation, the world’s most international business,” he added.
The transaction remains subject to regulatory and shareholder approvals and other closing conditions. It is expected to complete early next year.