DONE DEAL - Air Canada & Transat Conclude Definitive Agreement
Anna Kroupina, Open Jaw
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.
Air Canada and Transat have reached a deal for Air Canada's acquisition of all issued and outstanding shares of Transat.
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 approximatelyCAD$520 million.
"We are delighted to have reached this definitive agreement to combine Transat with Air Canada to achieve the best possible outcome for all stakeholders," said Calin Rovinescu, President and CEO at Air Canada. " Travellers 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."
Air Canada intends to preserve the Transat and Air Transat brands and maintain the Transat head office in Montreal.
"This fully-funded cash transaction is the ideal platform for Transat's presence and jobs in Montreal, and therefore represents the best option for all our stakeholders: employees, suppliers, partners and shareholders," said Jean-Marc Eustache, President and CEO of Transat.
Eustache also says that he is "very pleased" to join forces with Air Canada.
"The combination with Air Canada will give Transat new perspectives of growth, with the support of a strong network offering many options for connecting traffic," he says. "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."
Air Canada is also headquartered in Montreal.
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.
Air Canada and Transat have been in acquisition talks since fall 2018, when AC approached the airline and vacation company to explore a possible merger.
Anna Kroupina Journalist
Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.