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Air Canada slashes acquisition price for Air Transat from $720m to $188m as airlines take Covid-19 hit

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Air Canada lowers Transat buyout price to reflect COVID-19 hit

Air Canada AC.TO has lowered its price to buy Canadian tour operator Transat A.T. Inc TRZ.TO with the deal now worth about C$188.7 million ($143.86 million), down from $720 million previously, reflecting the post-COVID-19 reduction in airline values, the companies said in a statement on Saturday.

Air Canada had secured Transat shareholders’ approval for the deal last year with a sweetened C$18.00 a share bid, to bolster its leisure business.

Under revised terms of the deal, Air Canada said it will acquire all shares of Transat for C$5 per share, representing a premium of about 30.5% to Transat’s last close on Friday.

“Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms,” Calin Rovinescu, chief executive officer of Air Canada said in a statement.

The deal remains subject to shareholder approval, court approval and other regulatory approvals in Canada and the European Union, Air Canada said.

($1 = 1.3117 Canadian dollars)

—— AUTO – GENERATED; Published (Halifax Canada Time AST) on: October 10, 2020 at 02:30PM

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