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MONTREAL — While it has “taken note” of the announcement from Group Mach, offering $14 per share as part of an acquisition bid that would take the company private, Transat says it remains committed to its 30-day binding period of exclusive negotiations with Air Canada.
Group Mach’s bid tops Air Canada’s and includes $15 million from Spain’s TM Grupo Inmobiliario in exchange for a minority equity stake in Transat. TM has three hotels in Mexico, which is would roll over to Transat. Transat expects to open its own first resort in Mexico in 2020.
Air Canada’s bid for Transat, announced May 16, offers $13 per share in a $520 million deal.
Following Group Mach’s announcement yesterday, Air Canada was quick to reconfirm its commitment to Transat, saying it is in the process of finalizing its binding agreement to acquire the company. Air Canada added that it “has all necessary funding to complete the transaction and therefore it is not subject to financing conditions and does not require government or taxpayer assistance.”
The statement from Transat said: “Transat would like to reiterate that it has entered into an agreement with Air Canada, pursuant to which it has agreed to a 30-day binding period of exclusive negotiations, beginning upon the commencement of a formal due diligence review. During this exclusivity period it is contemplated that Air Canada will complete its due diligence review and the parties will finalize the negotiation of a definitive agreement regarding the acquisition of all of the shares of Transat. This exclusivity period expires towards the end of June 2019.”
Transat also said it won’t be issuing any further updates or comments as the process continues, except as required by law.
Transat added: “The operations of Transat continue in their normal course and there will be no change for its clients, suppliers and employees. In particular, travellers and clients of Transat can continue to travel and book their flights and vacation packages with Transat as usual.”