Transat Sale: tour operator tackles Mach’s new strategy
Groupe Mach’s bid to acquire 19.5% of Transat AT’s shares in an attempt to block Air Canada’s offer to purchase is an “abusive, coercive, misleading and conditional” ploy. Quebec tour operator.
L is the parent company of Air Transat responded Monday to the strategy of the real estate group, indicating that it would file an application with the Administrative Tribunal of the financial markets in addition to examining “other possible judicial proceedings.”
After seeing Transat AT’s board turn to Air Canada’s bid last June, Mach returned to the charge last Friday by offering to acquire a 19.5% stake in the tour operator by offering 14 $ per share.
The objective is to use the voting rights attached to these securities to vote against Air Canada’s offer, which must have the support of at least two-thirds of the shareholders of the tour operator in order to before.
Transat AT has asked its shareholders not to cede to the advances of the real estate group. The company believes that they will only know “after the extraordinary meeting if Mach will actually take delivery of the shares and pay them”.
Thus, says the company, the real estate group is trying to “get free voting rights” to create uncertainty.
“Mach’s scheme is intended to provide a bonus, but will only be paid, where applicable, on a limited number of shares and only on up to 19.9 per cent of all outstanding Class B Shares”, argued Transat AT
If accepted by the tour operator’s shareholders, Air Canada’s offer, valued at $ 520 million, will also be scrutinized by regulatory authorities, including Transport Canada and the Competition Bureau.