Done Deal – Air Canada Buys Air Transat – Both Brands Stay In Place

Courtesy commons.wikimedia.org

Montreal (CNW) – Air Canada and Transat A.T. Inc. announced on Thursday that they have finalized Air Canada’s acquisition of all issued and outstanding shares of Transat and its combination with Air Canada. Under the terms of the binding agreement, unanimously approved by the Board of Directors of Transat, Air Canada will acquire all outstanding shares of Transat for $13 per share. The value of the all-cash transaction is approximately $520 million.

The transaction remains subject to regulatory and shareholder approvals and other closing conditions usual in this type of transaction. If such approvals are obtained and conditions are met, the transaction is expected to be completed in early 2020.

Highights:

  • Combination of Skytrax Best Airline in North America and Skytrax Best Leisure Airline in the world to create Montreal-based global leader in leisure, tourism and travel distribution, offering Canadians choices to more destinations and promoting two-way tourism.
  • Air Transat and Transat brands to be maintained to complement the Air Canada, Air Canada Rouge and Air Canada Vacations brands.
  • Transat head office and key functions to be preserved in Montreal; made-in-Quebec combination to provide compelling platform for future growth and employment.
  • Purchase of outstanding Transat shares at $13 per share subject to regulatory and shareholder approvals. Purchase price represents premium of 156% over 30-day volume weighted average price (VWAP) of Transat shares and 143% over 90-day VWAP11 prior to Transat’s announcement of a potential sale process on April 30,2019.

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