Air Canada is offering $18 per share, up from $13, to buy Air Transat, Canada’s third-largest airline. The new bid brings the total offer to roughly $720 million from a previously announced bid worth $520 million. “We know this achieves the best possible outcome for all stakeholders. For shareholders of Transat and Air Canada, the combination delivers excellent value, while also providing increased job security for both companies’ employees through greater growth prospects,” said Calin Rovinescu, president and CEO of Air Canada.
Owner of 19 percent backs A/C bid
He said Air Canada now has the backing of Letko Brosseau and Associates Inc., Transat’s largest shareholder, which holds just over 19 percent of outstanding shares. Air Canada said it plans to preserve the Transat and Air Transat brands and maintain the Transat head office. Its higher bid comes as Transat has been facing off against rival bidder, the Montreal developer Group Mach, at a securities tribunal hearing over Mach’s move to block the tour operator’s sale to Air Canada.
