Thursday,  October 17, 2019  4:33 pm

Transat sale: Mach strikes back against Air Canada's bid

  • Air
  •   08-05-2019  12:00 pm

Transat sale: Mach strikes back against Air Canada's bid

A new chapter has evolved in the sale of Transat.

Group Mach has announced that it intends to acquire at least 6.9 million Transat AT Class B Voting Shares at a cost of $14 each. This represents approximately 19.5 per cent of the issued and outstanding shares, PAX has learned.

The real estate group, whose formal purchase offer Transat, filed on June 14, had not been retained by the latter, hopes to successfully block the possible acquisition of the tour operator by Air Canada at the meeting shareholders' meeting, which is happening August 23.

"The proposed acquisition by Air Canada under the proposed arrangement significantly underestimates Transat," Group Mach said in a statement.

The company added:

"The sales process undertaken by Transat's Board of Directors is defective in several respects, particularly with respect to the failure of Transat's Board to respond to Group Mach Inc. or to discuss with it its superior proposal, dated June 25, 2019 at a price of $14.00 cash per voting share."

In interview with La Presse Canadienne, Vincent Chiara, president of Group Mach, acknowledged that he had had discussions with other major shareholders at Transat AT. However, he wouldn’t say who.

Group Mach’s offer is valid until Tuesday, August 13th 5:00 p.m.

Update

In a statement emailed to PAX, Christophe Hennebelle, Vice-President, Human Resources and Corporate Affairs at Transat, wrote the following: 

"Transat has read the press release of Groupe MACH inc. concerning its tender offer to acquire 19.5% of Transat Class B shares (the "Offer")," Hennebelle wrote. 

"Transat's Special Committee of the Board of Directors reviews the terms of the Offer with its advisors in order to make a recommendation to shareholders as to its terms. Shareholders of Transat are requested TO NOT TAKE ANY MEASURE with respect to the Offer and NOT TO SUBMIT THEIR SHARES until Transat's Board of Directors has made a formal recommendation to shareholders. 

He added: "Having reviewed the press release announcing the Offer, Transat's Special Committee of Directors will review it with its advisors before making a formal recommendation to Transat's Board of Directors. Shareholders will be advised of any recommendation of the Board of Directors by means of a press release." 

This is a developing story. 


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