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

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

© Reuters. FILE Image: Calin Rovinescu, CEO of Air Canada speaks in the course of a panel dialogue on Cyber Security at the 2016 International Air Transport Association (IATA) Yearly Basic Conference (AGM) and Earth Air Transportation Summit in Dublin

(Reuters) – Air Canada (TO:) has lowered its price to invest in Canadian tour operator Transat A.T. Inc (TO:) with the deal now worth about C$188.7 million ($143.86 million), down from $720 million beforehand, reflecting the article-COVID-19 reduction in airline values, the corporations said in a statement on Saturday.

Air Canada experienced secured Transat shareholders’ acceptance for the deal last 12 months with a sweetened C$18.00 a share bid, to bolster its leisure business enterprise.

Beneath revised conditions of the offer, Air Canada stated it will acquire all shares of Transat for C$5 per share, symbolizing a premium of about 30.5% to Transat’s last close on Friday.

“Air Canada intends to finish its acquisition of Transat, at a lessened cost and on modified terms,” Calin Rovinescu, chief executive officer of Air Canada stated in a assertion.

The offer remains matter to shareholder acceptance, court docket approval and other regulatory approvals in Canada and the European Union, Air Canada explained.

($1 = 1.3117 Canadian bucks)

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