At a special meeting of shareholders on Tuesday, an overwhelming majority of Transat shareholders voted in favor of the ‘Arrangement Resolution’ under which Air Canada will acquire all outstanding Class A variable voting and Class B Transat shares.
On Tuesday (December 15, 2020) Transat A.T. Inc. (Transat) announced that at a special meeting today, an overwhelming majority of shareholders voted in favor of the ‘Arrangement Resolution’ under which Air Canada will acquire all issued and outstanding Class A variable and Class B voting shares of Transat. Shareholders will receive $5.00/share in cash, shares in Air Canada, or a combination of both. Shares in Air Canada will we issued on a price basis of 17.47/share or 0.2862 Air Canada shares per Transat share. Shareholders carrying an aggregate 22,763,632 votes approved the Arrangement Resolution by 90.88%, voting as a single class, excluding the votes of company CEO, Jean-Marc Eustache, as required by regulation.
In Tuesday’s announcement, Mr Eustache said,
“We are pleased with the shareholder support for this revised arrangement that will create a Montreal-based global leisure leader with the scope necessary to overcome the current turbulence in the industry and to thrive beyond. We are more convinced than ever that it is in the best interests of all our stakeholders to join forces with Air Canada.”
The transaction remains subject to approval by the Superior Court of Québec, regulatory approval under the Canada Transportation Act and the European Union Council Regulation (EC) no. 139/2004. All parties are working collaboratively to secure the requisite approvals prior to February 15, 2021.
Based in Montreal, Transat A.T. Inc. (Air Transat) has 5,000 employees and is the third largest airline in Canada and leading integrated tourism company specializing in holiday travel. The company offers vacation packages, hotel accommodations and air service to more than 60 destinations over 25 countries in the Americas and Europe. Air Transat has been named ‘World’s Best Leisure Airline’ at the Skytrax World Airline Awards.
Source: Air Transat