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.
