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Air Canada lowers price for rival as Covid hits carrier's value
Air Canada has lowered its offer price for budget rival Air Transat and parent company Transat in the wake of the pandemic.
Air Canada is now set to buy its rival for C$5 per share, down from the agreed price of C$18 a year ago. It means Air Transat’s value has plunged from £404 million to just £106 million, according to local media reports.
Air Transat president and chief executive Jean-Marc Eustache told CTV News the merger would allow the company “to withstand the current turbulence in the sector”. The deal will permit Transat to obtain £140 million in funds.
The bid, which still represents an almost 32% premium on Air Transat’s current share price, was due to have been completed in the summer, but is now likely to be sealed by mid-February.
Gary Noakes
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