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Transat AT Inc
Symbol TRZ
Shares Issued 37,727,573
Close 2019-06-24 C$ 13.49
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Transat acquiror Mach removes financing condition

2019-06-25 10:33 ET - News Release

An anonymous director of Group Mach reports


Group Mach Inc. has entered a non-binding agreement with the government of Quebec in connection with Group Mach's formal proposal to acquire all issued and outstanding voting shares of Transat AT Inc. at a price of $14 cash per share to the attention of the board of directors of Transat as announced in Group Mach's press release of June 14, 2019. As such, Group Mach has deposited today an amended version of its proposal with the board of directors of Transat by, in particular, removing conditions related to financing from the government of Quebec and the execution of support and voting agreements with the Fonds de solidarite FTQ and the Caisse de depot et placement du Quebec. Such amended proposal only contains the following conditions:

  • Transat terminating its current process with Air Canada prior to entering into any definitive acquisition agreement with Air Canada;
  • The execution of a confidentiality agreement between Transat and Group Mach, which includes a period of 30 days to complete due diligence and execute a definitive acquisition agreement between Group Mach and Transat during said period;
  • The receipt of customary regulatory approvals, namely the review of the amended proposal by federal competition and transportation authorities.

Of note in regards to key regulatory approvals, Group Mach, TM Grupo Inmobiliario and their subsidiaries do not carry on any activities in Canada in any of the segments of current activities of Transat. In particular, neither Group Mach nor TM or any of their subsidiaries operate an airline anywhere in the world. Group Mach shall preserve all existing operational activities of Transat postclosing of the proposed acquisition of Transat.

Considering the confidential nature of the above-mentioned agreement between Group Mach and the government of Quebec, Group Mach will not comment any further in this regard. For greater certainty, the amended proposal is not contingent in any respect upon such agreement.

Group Mach looks forward to the board of directors of Transat working with it to solidify the long-term profitability of the company as a strong and independent global leading vertically integrated leisure travel brand under the banner of Transat, thus successfully carrying out the company's strategic plan of 2018 to 2022 and preserving the legacy of its founders.

We seek Safe Harbor.

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