Transat's shareholders have voted in favour of Air Canada's bid, PAX has learned.
On Aug. 12, 2019, Air Canada agreed to increase the purchase price for the acquisition of all issued and outstanding shares of Transat, from $13 to $18 per share. Over the last few months, several offers have been made to purchase the company, but Transat has always backed its arrangement with Air Canada.
The airline also committed to keeping the Transat brand and the head office in Montreal.
La Presse reports that 95 per cent of Transat's shareholders supported the transaction.
The vote took place today (Aug. 23) at Transat's Special Meeting of Shareholders.
The transaction will now have to be approved by various regulatory authorities, including Transport Canada and the Competition Bureau.
A series of events
Groupe Mach, which previously offered $14 per share, withdrew its bid for Transat earlier in July. Following the withdrawal, Transat launched a legal complaint against Mach with the Tribunal administratif des marchés financiers, citing the offer as “highly abusive, coercive, misleading and conditional.”
Quebecor CEO Pierre Karl Peladeau also came in with an offer on Aug. 20, which Transat denies.
Shareholders carrying an aggregate of 26,530,771 votes, representing approximately 70.28 per cent 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 per cent of the votes cast by Shareholders, voting together as a single class, as well as 94.69 per cent of the votes cast by Shareholders, voting together as a single class, excluding the votes of Jean-Marc Eustache whose votes are required to be excluded in determining minority approval pursuant to Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions.
"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 CEO 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.
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