Transat A.T. Inc. shareholders approved a discount purchase offer from Air Canada on Tuesday, a spokesman for the Montreal-based tour operator said.
See also: Air Canada reports its third consecutive quarterly loss.
In October, Air Canada reduced its offer to buy Transat by nearly 75%, bringing the deal down to about $188.7 million Canadian dollars ($148.17 million), below $720 million Canadian dollars, as COVID-19 weighed on travel demand, Reuters reported.
Last year, the country’s largest airline had obtained Transat shareholder approval for the original deal, in order to bolster its then thriving leisure business.
See also: Qatar Airways and Air Canada Sign Codeshare Agreement.
However, with the pandemic affecting ground operations around the world, Air Canada faced shareholder pressure to renegotiate the agreement, which is still pending approval from European and Canadian regulators.
In October, the major shareholder of both companies described Air Canada’s revised offer as “very reasonable,” noting that the purchase price could be paid to Transat shareholders in cash or Air Canada shares.
By Allison Lampert; edited by Jonathan Oatis.
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