June 4, 2019 10:10 am
Updated: June 4, 2019 11:15 am

Quebec developer outbids Air Canada in offer to purchase Transat

ABOVE: Air Canada in exclusive talks to takeover Air Transat (May 16)

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MONTREAL – A Quebec real estate developer has made a takeover offer for Transat AT Inc. worth $14 per share in cash, which is above what Air Canada has proposed.

The offer from Group Mach Inc. comes after Transat announced last month it was in exclusive talks to be acquired by Air Canada, which was proposing to pay $13 per share.

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READ MORE: Air Canada in talks to purchase Air Transat for $488 million

Trading in Transat shares has halted ahead of the announcement. The shares closed at $11.84 on the Toronto Stock Exchange on Monday.

Mach says the offer is the culmination of a process that began when it approached Transat in January.

READ MORE: List of Quebec business leaders interested in buying Transat AT continues to grow

Under its offer, the company committed to keep Transat’s head office, executive team and centre of decision-making in Montreal.

Transat offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands.

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© 2019 The Canadian Press

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