Air Canada / Air Transat agreement well on the track
A significant majority of shareholders voted in favor of the Arrangement Resolution between Air Canada and Transat A.T. Inc — Air Transat's parent company.
On August 23, 95% of Transat A.T. Inc.’s shareholders have approved the Arrangement Resolution with Air Canada to allow the Canadian airline to acquire all the issued and outstanding Class A variable voting shares and Class B voting shares of Transat.
“We are delighted by the shareholder support for the arrangement that will create a Montreal-based travel leader, able to compete on a global scale”, said Jean-Marc Eustache, President and Chief Executive Officer of Transat. “This transformative transaction will create long-term benefits for our employees, travellers and communities, all the while providing significant value for our shareholders.”
This strong adherence of Transat A.T. Inc.’s shareholders is certainly related to the offer increase per share made by Air Canada in mid-August. Initially, the main Canadian airline made an offer of 13 Canadian dollars per share in June and was chosen in spite of a 14 Canadian dollars offer from Groupe Mach — specialized in the hotelier development — for a fifth of Transat’s shares. To convince the shareholders, Air Canada increased its offer up to C$720 million.