Transat Sinks Toward Deal Price as Prospects Dim for Higher Bid
Michael Bellusci, Bloomberg News Air Transat aircraft sit on the tarmac at Toronto Pearson International Airport (YYZ) in Toronto, Ontario, Canada, on Wednesday, April 8, 2020. The airport is now averaging 200 flights per day, down from 1,200 before the Covid-19 pandemic, CTV News reported. , Bloomberg
(Bloomberg) For weeks, shares of Transat AT Inc. have been trading above Air Canadaâs takeover bid of C$5 per share. Theyâve been sinking closer to that price as the deal edges closer to the finish line.
Transat shareholders will vote Tuesday morning on the bid from its larger Montreal-based competitor. The meeting is one of the final stages of a long, strange flight that began in April 2019, when the vacation tour operator disclosed it was in preliminary talks on a potential sale.
Transat Holders Approve Air Canada’s Lower Bid; Shares Gain
Bloomberg 12/15/2020 Michael Bellusci
(Bloomberg) Shareholders of Transat AT Inc. approved a reduced takeover bid from Air Canada, despite the last-minute revelation of a competing offer.
Transat investors voted 91% in favor of the revised C$5-per-share bid, which includes the option to take Air Canada shares instead of cash. The outcome was announced less than two hours after Transat said it received an approach from another potential buyer that its board rejected.
“In late November 2020 Transat received an unsolicited proposal from a private investor, who is not actively involved in the airline and tourism industries,” the Montreal-based company said in a release Tuesday. The board considered it, but unanimously determined it didn’t represent a “superior proposal.” It didn’t name the investor.