Air Canada in exclusive talks to buy Air Transat - Takeover price of $13 a share is a 22% premium to where Air Transat was valued yesterday
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May 16, 2019 - by cbc.ca
Air Canada is in exclusive negotiations to buy the company that owns Air Transat, the two companies say.
The proposed deal would value Transat at $13 per share, a 22 per cent premium from the $10.58 a share the company was valued at on Wednesday. At $13, Transat is being valued at roughly $520 million.
Shares in Transat A.T. Inc., the corporate entity that owns Air Transat, were briefly halted on the news, but when trading began, they jumped about 16 per cent to just over $12. That's below the level Air Canada is offering, which could be a sign investors aren't convinced it's a done deal.
Earlier this month, Montreal-based Transat announced it had been approached by more than one party about a possible sale of the company. Speculation at the time was that another Canadian airline, likely either Air Canada or WestJet, would make the most sense as a suitor.
"A combination with Transat represents a great opportunity for stakeholders of both companies," said Calin Rovinescu, Air Canada's CEO, in a release...