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Quebec developer strikes deal with province, drops financing condition of Transat bid

Mach stepped in with a rival proposal for Transat. THE CANADIAN PRESS/Paul Chiasson

Group Mach Inc. says it has reached a non-binding agreement with the Quebec government in connection with its bid for Transat AT Inc. and dropped a key financing condition.

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The real estate development firm has proposed to acquire all of Transat’s shares for $14 each or roughly $527.6 million.

READ MORE: Quebec developer plans to file rival bid for Transat before talks with Air Canada end

Transat began exclusive talks with Air Canada, set to end on Wednesday, after the country’s largest airline made a bid of $13 per share or last month.

However, Mach stepped in with a rival proposal.

READ MORE: Quebec developer outbids Air Canada in offer to purchase Transat

Mach did not release any details of its agreement with the provincial government.

It said Tuesday it has submitted an amended version of its proposal removing conditions related to financing from the Quebec government and the execution of support and voting agreements with the Fonds de solidarité FTQ and the Caisse de dépôt et placement du Québec.

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

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