Group Mach proposes to purchase approx 19.5% of Transat shares

Group Mach announced (02-Aug-2019) plans to purchase 6.9 million class B voting shares of Transat AT, approximately 19.5% of the company's issued and outstanding shares, at a price of CAD14 (USD10) per share. Mach stated it does not intend to launch any formal takeover bid for all voting shares and will not issue a "superior proposal" ttohan that of Air Canada, so long as the current Transat board of directors is in place. Mach submitted reasons for Transat to accept its offer, which included the following:

• Mach offers a premium cash offer, near term liquidity and long term shareholder value;
• Air Canada's offer undervalues Transat, reduces competition and will not generate liquidity until 2020.

Mach also noted Transat is not currently dealing with indefinitely grounded Boeing 737 MAX 8 fleets, in contrast to Air Canada. [more - original PR]