by Jim Byers
Last updated: 12:15 PM ET, Sun May 16, 2021
Pierre Karl Peladeau's bid for Transat appears to be over.
The Quebec businessman has been pursuing a purchase of the Montreal-based company for months. But published reports say he has "no more interest" in the company because he hasn't been able to agree on a price with Transat's largest shareholder, Letko, Brosseau & Associates
Transat issued the following statement about the situation.
"On April 7, 2021, Mr. Péladeau delivered to Transat a non-binding proposal contemplating a transaction pursuant to which MTRHP would acquire all of the shares of Transat for a consideration of $5.00 per share, payable in cash. Although this proposal required a response within two days, the parties have from that date and until May 13 continued their discussions on the basis of this proposal and it has been thoroughly reviewed by the special committee of independent directors responsible for evaluating any proposal to acquire the Transat shares with the assistance of financial and legal advisors.
"Transat has taken note of Mr. Péladeau's public statements ... but has not received any formal communication on this matter.
"Transat announced on April 29, 2021 that it had reached an agreement with the Government of Canada to borrow up to $700 million in additional liquidity through the Large Employer Emergency Financing Facility (LEEFF). This additional liquidity allows the company to plan for the resumption of its operations and the implementation of its strategic plan for the coming years."
Air Canada had an offer to purchase Transat but that was dropped in early April.
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