AAirlines

Air Canada will pay almost four times less for the purchase of Transat.

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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.

See also: EasyJet warns that its annual loss could exceed $1 billion.

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.

See also: Latam Airlines receives the first disbursement of US$1.15 billion for its financial reorganization.

“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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