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