Yahoo Finance Transat's stock closes at $14.19 as Air Canada 30-day negotiating period ends
With a 30-day negotiating period over its future coming to a close, Transat A.T. Inc’s stock ended Wednesday at $14.19, higher than the initial takeover offer from Air Canada.
Air Canada announced on May 16 that it was in exclusive talks to buy the airline and travel tour operator for $13 a share, valuing the company at $520 million. In a separate statement, Transat said it had agreed to a 30-day period of exclusive negotiations with Canada’s largest airline, which expired on Wednesday.
Air Canada and Transat had not released statements about the results of the 30-day negotiation period as of 5:30 p.m. ET on Wednesday.
Air Canada’s offer represented a 23 per cent premium on Transat’s stock price at the time of the offer. Since then, the company’s stock price has surpassed Air Canada’s bid while Transat has received additional takeover offers.
Group Mach Inc., a real estate development firm, has proposed to acquire all of Transat’s shares for $14 each, or $527.6 million. The company said Tuesday it had submitted an amended version of its proposal removing conditions related to financing from the Quebec government and the execution of support and voting agreements with the Fonds de solidarite FTQ and the Caisse de depot et placement du Quebec.
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