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Transat A.T. Inc. Announces Revised Acquisition Transaction with Air Canada
Transat A.T. Inc. Announces Revised Acquisition Transaction with Air Canada Can...
About this update from Transat A.t. Inc.
[{"type":"text","content":"TransatAT-RevAcqAC\n \n \n \n Transat A.T. Inc. Announces Revised Acquisition Transaction with Air Canada\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n MONTREAL, Oct. 10, 2020\n \n \n \n \n \n Transat also announces new\n \n $250 million\n \n loan facility\n \n \n \n \n MONTREAL\n \n ,\n \n Oct. 10, 2020\n \n /CNW Telbec/ - Transat A.T. Inc. (\"\n \n Transat\n \n \" or the \"\n \n Corporation\n \n \") announced today that it has revised its arrangement agreement with Air Canada to reflect current market and economic conditions and the devastating impact of the COVID-19 pandemic on the worldwide airline, travel and tourism industries. Under the terms of the binding agreement they have entered into, unanimously approved by the Board of Directors of Transat, Air Canada will acquire all issued and outstanding shares of Transat for\n \n $5.00\n \n per share, payable at the holder's option either in cash or shares of Air Canada, or a combination thereof, to form a global\n \n Montreal\n \n -based combined company. The purchase price represents a premium of 31.6% over the 20-day volume weighted average price (VWAP) of Transat shares on October 8, 2020. Transat also announced today the implementation of a new $250 million short-term loan facility.\n \n \n \"With the volume now forecasted to be down 66% worldwide at the end of 2020, it is clear that the world has changed since the signing of the original agreement in\n \n June 2019\n \n ,\" said\n \n Jean-Marc Eustache\n \n , President and Chief Executive Officer of Transat. \"This is the worst crisis since the founding of Transat 33 years ago and with a second wave of the pandemic underway, the timing of an eventual recovery remains uncertain. More than ever, having a national airline with the scale to weather current industry turbulence, which is expected to continue for several years, is in the best interests of our shareholders, customers, employees and other stakeholders.\"\n \n \n Given the uncertainty related to the COVID-19 pandemic, con...