MONTREAL – Transat AT Inc. is in exclusive talks with Air Canada, which is offering roughly $488 million to buy the travel company.
The Montreal-based company says it has agreed to a 30-day period of exclusive negotiations regarding a possible deal at a price of $13 per share.
READ MORE: WestJet to be sold in friendly deal to Onex Corp. for $5 billion
Transat shares closed at $10.58 on the Toronto Stock Exchange on Wednesday.
The company offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands.
READ MORE: List of Quebec business leaders interested in buying Transat AT continues to grow
Transat says that after being solicited by several parties, its board has determined that it’s in the interests of Transat and its stakeholders to finalize negotiations on an exclusive basis with Air Canada.
READ MORE: Air Canada says financial impact of Boeing groundings ‘expected to increase’
The company first disclosed that it had held preliminary talks regarding the possible sale of the company last month, but did not name the potential bidders at that time.