Air Canada will pay almost four times less for the purchase of Transat.
Air Canada has lowered its price to buy Canadian tour operator Transat A.T. with the deal now worth about C$188.7 million ($143.86 million), down from $720 million previously, reflecting the post-COVID-19 reduction in airline values, the companies said in a statement on Saturday, Reuters reported.
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Air Canada had secured Transat shareholders’ approval for the deal last year with a sweetened C$18.00 a share bid, to bolster its leisure business.
Under revised terms of the deal, Air Canada said it will acquire all shares of Transat for C$5 per share, representing a premium of about 30.5% to Transat’s last close on Friday.
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“Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms,” Calin Rovinescu, chief executive officer of Air Canada said in a statement.
The deal remains subject to shareholder approval, court approval and other regulatory approvals in Canada and the European Union, Air Canada said.
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