Air Transat owner confirms takeover talks
Ownership of Montreal-based airline a tour operator group Transat AT Inc could be about to change hands.
Ahead of its annual meeting, the company said more than one party is in talks over a potential sale.
That saw Transat’s share price go sky-high.
It soared more than 40% on the Toronto Stock Exchange.
Talks are still at a preliminary stage and a committee of independent directors will evaluate the proposals along with its legal advisers.
"I want to reiterate that the discussions are at a preliminary stage and no decision has been made on a potential transaction," Transat AT chief executive Jean-Marc Eustache told shareholders.
Transat is restructuring the business to focus more heavily on hotel and resort development in vacation hotspots, as its airline unit struggles amid growing completion.
Government rules limiting foreign ownership of Canada based airlines to 49% limits the likelihood of a foreign purchase, although Tui has been mooted as a possible suitor, and Air Canada is also an obvious candidate.
Quebec Premier François Legault is hoping whatever happens Transat will continue to operate from its Quebec HQ.
"For me it’s important to do everything we can to keep the headquarters in Quebec. I’m thinking about the employees," Legault said.
Legault is actually a co-founder and former CEO of Transat.
He no longer has any interest or shares in the business but has recused himself from any negotiations due to his connections.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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