Air Canada wants to buy travel company Transat. (Photo by THE CANADIAN PRESS)

Transat in exclusive talks with Air Canada to be acquired for $13 per share

MONTREAL — Transat AT Inc. is in exclusive talks with Air Canada, which is offering $13 per share to buy the travel company.

The Montreal-based owner of Air Transat and other travel businesses has been approached by several parties but said Thursday it has agreed to a 30-day period of exclusive negotiations with Air Canada.

Air Canada said separately that it values its offer at about $520 million.

Transat chief executive Jean-Marc Eustache called the announcement good news for the company.

“This is an opportunity to team up with a great company that knows and understands our industry and has had undisputable success in the travel business,” Eustache said in a statement.

“This represents the best prospect for not only maintaining, but growing over the long term the business and jobs that Transat has been developing in Quebec and elsewhere for more than 30 years.”

Transat offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands.

Air Canada chief executive Calin Rovinescu said a combination with Transat represents a great opportunity for stakeholders of both companies.

“The acquisition presents a unique opportunity to compete with the very best in the world when it comes to leisure travel,” Rovinescu said in a statement.

Transat first disclosed that it had held preliminary talks regarding the possible sale of the company last month, but did not name the potential bidders at that time.

The news of a potential sale comes after Toronto-based Onex Corp. announced a deal to buy WestJet Airlines Ltd. earlier this week.

Transat shares closed at $10.58 on the Toronto Stock Exchange on Wednesday.

Just Posted

Red Deerians shop for exotic plants at spring plant sale

Exotic plants are popular at the Red Deer & District Garden Club’s… Continue reading

Central Albertans come together to end MS

Red Deer’s Bre Fitzpatrick has MS. The medication the 34-year-old is on… Continue reading

Wildfire crews watching for dangerous wind shift in High Level, Alta.

HIGH LEVEL, Alta. — Crews battling an enormous wildfire just outside the… Continue reading

New poll suggests one-third don’t want politicians to wear religious symbols

OTTAWA — While most Canadians firmly back the Charter of Rights and… Continue reading

Red Deer stamp-collecting event a hit, local club expected to start in fall

Postage stamp-loving Red Deerians can expect to have a place to gather… Continue reading

WATCH: Cars, airplanes, motorcyles on display at Red Deer Airport

Cars, motorcycle and airplane enthusiasts united at the Red Deer Airport Sunday… Continue reading

Cast your votes for the Best of Red Deer

Nominations for the Best of Red Deer Readers’ Choice Awards are officially… Continue reading

Bid to get D-Day beaches added to list of UN World Heritage Sites in limbo

OTTAWA — The beaches of Normandy, where the Allies stormed ashore to… Continue reading

Could this 20-year-old Montreal polyglot be Canada’s most multilingual student?

MONTREAL — Georges Awaad answers the phone with a polite “Hello,” but… Continue reading

Feds lay out proposed new rules for voice, video recorders in locomotives

OTTAWA — The federal Liberals have laid out their proposal for rules… Continue reading

Trump’s trophy day of sumo, golf and cheeseburgers in Japan

TOKYO — President Donald Trump presented a special U.S.-made trophy to the… Continue reading

Two dead, one seriously injured, following explosion in Calgary home’s garage

CALGARY — Police in Calgary say they believe a house fire where… Continue reading

Raptors fans spill onto the streets ahead of potentially historic game

Cars honked, exhilarated fans chanted and long lines formed outside bars and… Continue reading

Most Read