Groupe Mach has decided to pull its bid for Transat A.T. Inc., claiming Transat didn't communicate with the company at all, and ignored its proposal.
READ MORE: BREAKING: Air Canada acquires Transat A.T. Inc.
The Canadian Press reports that the announcement came Wednesday afternoon.
Air Canada's terms provide for a break fee of $15 million payable by Transat in case of termination of the agreement in certain circumstances, including upon acceptance of a superior proposal that is not matched by Air Canada.
Technically speaking, this means Transat has until Aug. 26, 2019 to find a higher bidder than Air Canada, hence why Groupe Mach is vocalizing its disappointment; at $14 per share for a bid of one billion dollars, the proposal was significantly higher than Air Canada's bid of $13 per share, or roughly $520 million.
The Arrangement Agreement also provides for the payment by Air Canada of a reverse break fee of a maximum of $40 million in the event that the agreement is terminated because regulatory or governmental approvals are not obtained, subject to certain conditions.
Don't miss a single travel story: subscribe to PAX today!