13-Aug-2019 9:18 AM

Air Canada announces agreement with Transat, increases transaction value to USD543m

Air Canada and Transat announced (11-Aug-2019) an agreement whereby Air Canada will acquire all Transat issued and outstanding shares for CAD18 (USD13) per share, instead of the previously agreed upon price of CAD13 (USD9) per share. The all cash transaction is now valued at approximately CAD720 million (USD543 million). Additionally, Air Canada entered into a lock up and support agreement with Letko Brosseau & Associates, Transat's largest shareholder which controls approximately 19.3% of all Transat issued and outstanding shares. Letko agrees to vote all its Transat class B voting shares in favour of Air Canada's acquisition of Transat. The Transat board of directors and special committee approves amendments made to the arrangement agreement between Air Canada and Transat, which includes an increase in the break fee payable by Transat from CAD15 million (USD11 million) to CAD40 million (USD30 million). Air Canada president and CEO Calin Rovinescu stated the agreement to increase the price was "to ensure the transaction receives the necessary level of support at the special meeting of shareholders of Transat". [more - original PR - English/French]

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