Transat holders approve Air Canada’s lower bid; shares gain

Shareholders of Transat approved a reduced takeover bid from Air Canada, despite the last-minute revelation of a competing offer. Transat investors voted 91% in favor of the revised C$5-per-share bid, which includes the option to take Air Canada shares instead of cash. The outcome was announced less than two hours after Transat said it received an approach from another potential buyer that its board rejected. “In late November 2020 Transat received an unsolicited proposal from a private investor, who is not actively involved in the airline and tourism industries,” the company said in a release Tuesday. The board considered it, but unanimously determined it didn’t represent a “superior proposal.” It didn’t name the investor. Canada’s regulators still must approve the deal, while the EU’s antitrust commission has until Feb. 9 to conclude its review. Another offer would provide support to Transat’s share price under a scenario where the deal is blocked by regulators, according to Desjardins Securities analyst Benoit Poirier. He cited WestJet Airlines as a potential buyer.<br/>