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Pierre Karl Péladeau no longer interested in buying Transat AT

Quebecor President and CEO Pierre Karl Peladeau speaks at the company's annual general meeting in Montreal, Thursday, May 11, 2017. Graham Hughes/The Canadian Press

Transat A.T. says negotiations about a takeover offer from Pierre Karl Péladeau ended Thursday, while the Quebec businessman says that he was no longer interested in acquiring the tour operator.

According to an update issued by Transat on Friday, Péladeau sent it a non-binding proposal on April 7, under which his private investment company Gestion MTRHP would acquire all of the Transat shares for $5 in cash per share.

Even though the proposal called for a response within 48 hours, the two groups continued talks until Thursday, Transat said in a statement.

The offer was also the subject of an in-depth review by a special committee, made up of independent directors who were responsible for evaluating any proposal to acquire Transat shares.

READ MORE: Transat extends flight suspension until end of July due to ongoing travel restrictions

However, Péladeau said Thursday that he had “no more interest” in the tour operator, specifying that he had not been able to agree on a price with Transat’s largest shareholder, Letko, Brosseau & Associates.

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Transat said it is aware of Péladeau’s public statements, but added that it had not received any formal communication on this subject.

Talks between the two sides followed an aborted transaction with Air Canada. The country’s largest airline pulled the plug on its $190-million deal last month over Europe’s unwillingness to approve the transaction.

Transat reached an agreement with Ottawa to borrow up to $700 million to reimburse its customers whose flights were cancelled due to the COVID-19 pandemic, and help support its business.

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