Combination of two Quebec-based travel leaders to benefit all
stakeholders; Control of Transat A.T. Inc. to remain in
Quebec
- Purchase of all outstanding Transat A.T. Inc. shares at
$13 per share, subject to
confirmatory due diligence, regulatory and shareholder approvals
and final documentation.
- Combination of two respected Quebec-based aviation and travel brands to
create Montreal-based global
leader in leisure, tourism and travel distribution offering
Canadians choices to more destinations and promoting two-way
tourism.
- Made-in-Quebec solution to
maintain high-quality head office jobs and key functions in
Montreal as well as provide a
platform for future growth and employment.
MONTREAL, May 16, 2019 /CNW Telbec/ - Air Canada
announced today that it has entered into an exclusive agreement
with Transat A.T. Inc. (Transat) regarding the proposed purchase by
Air Canada of all issued and outstanding shares of Transat and its
combination with Air Canada. The proposed transaction, valued at
approximately $520 million or
$13.00 per share of Transat (on a
fully-diluted basis), will create a Montreal-based global travel services company
in leisure, tourism and travel distribution operating across
Canada and internationally. Air
Canada has all the necessary
funding required to complete the transaction which is accordingly
not subject to financing conditions.
"A combination with Transat represents a great opportunity for
stakeholders of both companies. This includes the
shareholders of both Transat and Air Canada, employees of both
companies, who will benefit from increased job security and growth
prospects, and Canadian travellers, who will benefit from the
merged company's enhanced ability to participate as a leader in the
highly competitive leisure travel market globally. The acquisition
presents a unique opportunity to compete with the very best in the
world when it comes to leisure travel. It will also allow us to
further grow our hub at Montréal-Trudeau Airport, where we have
added 35 new routes since 2012 to the benefit of the Montreal and Quebec communities, and from which we carried
10 million customers in 2018 alone," said Calin Rovinescu,
President and Chief Executive of Air Canada.
The transaction remains subject to the finalization of
definitive agreements, confirmatory due diligence, regulatory and
shareholder approvals and other closing conditions usual in this
type of transaction. There is no assurance that the transaction
will be completed as described in this news release or at all. No
further announcements are expected to be made by Air Canada until
the signature of the definitive agreements unless required by law.
Air Canada has retained Morgan
Stanley as its financial advisor.
Air Canada presence and
investment in Montreal and the
Province of Quebec.
Air Canada is proud to have
been named one of Montreal's top
employers for each of the last six years. Headquartered in
Montreal since 1949, Air Canada
maintains one of the largest global head offices in Quebec. Air Canada employs 36,000 employees globally, with
close to 10,000 of those in the province of Quebec where it has created over 2,600 new
jobs over the last five years. Air Canada's Executive Committee members
(President and Chief Executive Officer, Chief Financial Officer,
Chief Commercial Officer and Executive Vice-President, Operations)
in addition to many other key members of the Executive Management
team are all based in the Montreal
Headquarters.
Air Canada serves 11 airports
across Quebec. The international
reach of Air Canada's network makes Quebec a gateway to the world and is an
important tool for economic development, including tourism.
Montréal-Trudeau Airport is a strategic hub for Air Canada
connecting its Quebec and
Atlantic Canada domestic network,
with its U.S. transborder, Caribbean, European, North African, Asian and
South American flights. To the U.S. alone, Air Canada connects
Montreal-Trudeau to some 24 cities.
Since 2012, Air Canada has launched 35 new routes from
Montréal-Trudeau to global markets including Shanghai, Beijing, Tokyo, Tel
Aviv, Lima, Sao Paulo, and Casablanca. This growth has allowed
Montreal to rank amongst the top
50 most internationally connected cities in the world and to become
one of the largest North American hubs.
Air Canada served more than 10
million passengers in Montreal in
2018.
Caution Regarding Forward-Looking Information
This news release includes forward-looking statements within
the meaning of applicable securities laws. Forward-looking
statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Forward-looking
statements cannot be relied upon due to, amongst other things,
changing external events and general uncertainties of the business.
Actual results may differ materially from results indicated in
forward-looking statements due to a number of factors. The
acquisition of Transat A.T. Inc. is subject to
the satisfactory negotiation of transaction
documents, Transat A.T. Inc. shareholder
approval, court approval, regulatory approvals, and
certain customary and other conditions and there are no assurances
that the acquisition will be completed as described in this news
release or at all. Any forward-looking statements contained in this
news release represent expectations as of the date of this news
release and are subject to change after such date. However, except
as required under applicable securities regulations, any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
is disclaimed.
About Air Canada
Air Canada is Canada's largest domestic and international
airline serving nearly 220 airports on six continents. Canada's flag carrier is among the 20 largest
airlines in the world and in 2018 served nearly 51 million
customers. Air Canada provides
scheduled passenger service directly to 63 airports in Canada, 56 in the
United States and 100 in Europe, the Middle
East, Africa, Asia, Australia, the Caribbean, Mexico, Central
America and South America.
Air Canada is a founding member of
Star Alliance, the world's most
comprehensive air transportation network serving 1,317 airports in
193 countries. Air Canada is the only international
network carrier in North America to receive a Four-Star
ranking according to independent U.K. research firm Skytrax, which
also named Air Canada the 2018 Best Airline in North America.
For more information, please visit: aircanada.com/media,
follow @AirCanada on Twitter and join Air Canada
on Facebook.
Internet: aircanada.com
SOURCE Air Canada