by Jim Byers
Last updated: 12:55 AM ET, Sat August 24, 2019
Transat shareholders have overwhelmingly approved Air Canada's takeover bid and its $18 per share offer.
In a statement released today, Transat A.T. Inc. said shareholders carrying an aggregate of 26,530,771 votes, representing approximately 70.28% of votes entitled to be cast at the Meeting, were represented in person or by proxy at the Meeting. The Arrangement Resolution was approved by 94.77% of the votes cast by shareholders."
Today's vote is a critical step in the proposed takeover of Transat by the country's leading air carrier, but the deal still must be approved by Canadian regulators, who could insist on changes to airline operations.
Air Canada said in a statement that the deal could be finalized early next year.
"This is the best possible outcome for all stakeholders," said Air Canada President and CEO Calin Rovinescu. "For shareholders of Transat and Air Canada, the combination delivers excellent value, while also providing increased job security for both companies' employees through greater growth prospects.
"Air Canada plans to preserve the Transat and Air Transat brands and maintain the Transat head office and its key functions in Montreal," he said. "Travellers will benefit from the combined companies' enhanced capabilities in the highly competitive, global leisure travel market and from access to new destinations, more connecting traffic and increased frequencies. Customers and the Quebec economy will derive maximum advantage of having a Montreal-based, growth-oriented global champion in aviation, the world's most international business, spurring more employment and securing Montreal's position as a leader among world aviation centres."
"We are delighted by the shareholder support for the arrangement that will create a Montreal-based travel leader, able to compete on a global scale" said Jean-Marc Eustache, President and Chief Executive Officer of Transat. "This transformative transaction will create long-term benefits for our employees, travellers and communities, all the while providing significant value for our shareholders."
The Arrangement remains subject to certain closing conditions including the approval of the Superior Court of Québec and applicable regulatory approvals such as the approvals under the Competition Act (Canada), the Canada Transportation Act and the European Union Council Regulation (EC) No. 139/2004, as well as other customary closing conditions, Transat officials noted.
Air Canada originally offered $13 a share but upped that to $18 a couple weeks ago.
Air Canada is the country's largest airline and flies to destinations around the world. Transat A.T. Inc. is a leading integrated international tourism company specializing in holiday travel. It offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands to some 60 destinations in more than 25 countries in the Americas and Europe.
If the deal goes through, Air Canada/Transat would control roughly 60% of the transatlantic market from Canada.
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