Could AC Buy Transat? 16May19 Update: AC enters into agreement to buy Transat
#166
Join Date: Aug 2014
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Not sure if this hit the anglo news yet but La Presse ran this interesting piece this morning.
Achat de Transat par Air Canada: le plus gros actionnaire dit non
Achat de Transat par Air Canada: le plus gros actionnaire dit non
#167
Join Date: Apr 2019
Location: Copenhagen
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Not sure if this hit the anglo news yet but La Presse ran this interesting piece this morning.
Achat de Transat par Air Canada: le plus gros actionnaire dit non
Achat de Transat par Air Canada: le plus gros actionnaire dit non
#169
Join Date: Dec 2008
Location: Delta, BC
Posts: 1,646
I'd say Transat is lacking the capital financing and +ve cash-flow ability to fix the hole, which is why it is considering the sale in the first place and this is just a ploy to try to force a higher offer, which I don't see unless an alternative bidder arises after the 30-day exclusivity window expires.
#170
Join Date: Oct 2009
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Another breaking development:
A Quebec real estate developer has made a takeover offer for Transat AT Inc. worth $14 per share in cash, which is above what Air Canada has proposed.
The offer from Group Mach Inc. comes after Transat announced last month it was in exclusive talks to be acquired by Air Canada, which was proposing to pay $13 per share.
The offer from Group Mach Inc. comes after Transat announced last month it was in exclusive talks to be acquired by Air Canada, which was proposing to pay $13 per share.
#171
Join Date: Jun 2011
Location: Montreal
Posts: 221
My take of the Groupe Mach bid is that they want to get first dibs at the hotel development portfolio, and don't really care about the airline as they are not related whatsoever to tourism industry, they are a pure play real estate development firm.
It will end up as a "joint" bid between AC and Mach, AC for the airline and anything travel agency related, Mach for the piece of land in Mexico and everything else related to real estate.
It will end up as a "joint" bid between AC and Mach, AC for the airline and anything travel agency related, Mach for the piece of land in Mexico and everything else related to real estate.
#172
Join Date: Apr 2009
Location: YYC / random hotel in YYZ
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Or they bid together.... and keep Transat seperate from Rouge but rebrand...
Air Canada Mainline (we charge you alot for J and you sheeps will pay...)
Air Canada Rouge (we charge you alot of sardine space and you sheeps will pay...)
Transat Mach by Air Canada (we make you think we go fast, but really you just go to our all inclusives and drink like fish so we can put our profits into more real estate...)
Air Canada Mainline (we charge you alot for J and you sheeps will pay...)
Air Canada Rouge (we charge you alot of sardine space and you sheeps will pay...)
Transat Mach by Air Canada (we make you think we go fast, but really you just go to our all inclusives and drink like fish so we can put our profits into more real estate...)
#173
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I am going with the real estate group taking the hotel and real estate portfolio and Air Canada picking up the airline portion. After all, I believe AC was only interested in the airline operations. Personally, I hope AC walks away from the potential financial fiasco. Let Air Transat sink or swim with Quebec taxpayers and pension funds at risk.
#174
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I think the A321 neos that TS is receiving is one of the driving forces behind this. Otherwise the wait for them is years. AC is paying around 530 million for TS. Wonder what 10 new 321 neo LR's would go for.
#175
Join Date: Dec 2006
Location: YEG
Posts: 3,925
I’m certainly no expert, but I’d think that if AC wanted 321neos in short order they could buy slots from others for significantly less than $520 million.
#176
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I doubt they are buying TS for aircraft orders they could easily obtain for themselves.
They want to remove competition from the market, eliminate choice, and jack up fares. Same old story with them and certainly not a surprise at all.
I'd expect that the other group actually wants to make money with the hotel/tour package side of the business.
They want to remove competition from the market, eliminate choice, and jack up fares. Same old story with them and certainly not a surprise at all.
I'd expect that the other group actually wants to make money with the hotel/tour package side of the business.
#177
Join Date: Apr 2011
Location: YYC
Programs: AC 50k 1MM, Marriott LT Titanium Elite
Posts: 3,400
I doubt they are buying TS for aircraft orders they could easily obtain for themselves.
They want to remove competition from the market, eliminate choice, and jack up fares. Same old story with them and certainly not a surprise at all.
I'd expect that the other group actually wants to make money with the hotel/tour package side of the business.
They want to remove competition from the market, eliminate choice, and jack up fares. Same old story with them and certainly not a surprise at all.
I'd expect that the other group actually wants to make money with the hotel/tour package side of the business.
Last edited by tcook052; Jun 5, 2019 at 10:24 am Reason: off topic
#178
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https://www.skiesmag.com/press-relea...ansat-a-t-inc/
Air Canada said on June 4 that it is in the process of finalizing its binding agreement to purchase all of the issued and outstanding shares of Transat A.T. Inc. and its combination with Air Canada to create an industry leading, Quebec-based leader in the global leisure travel industry. Air Canada announced on May 16, 2019 that it had entered into an exclusive agreement with Transat regarding the proposed transaction and that the agreement was subject to Air Canada completing a 30-day due diligence period now expected to be complete towards the end of June.
Air Canada’s acquisition will result in job creation and economic growth in Quebec, given the travel and tourism opportunities. Moreover, Air Canada has all necessary funding to complete the transaction and therefore it is not subject to financing conditions and does not require government or taxpayer assistance.
The transaction, valued at $520 million, remains subject to the finalization of definitive agreements, confirmatory due diligence, regulatory and shareholder approvals and other closing conditions usual in this type of transaction. There is no assurance that the transaction will be completed as described in this news release or at all.
Air Canada said on June 4 that it is in the process of finalizing its binding agreement to purchase all of the issued and outstanding shares of Transat A.T. Inc. and its combination with Air Canada to create an industry leading, Quebec-based leader in the global leisure travel industry. Air Canada announced on May 16, 2019 that it had entered into an exclusive agreement with Transat regarding the proposed transaction and that the agreement was subject to Air Canada completing a 30-day due diligence period now expected to be complete towards the end of June.
Air Canada’s acquisition will result in job creation and economic growth in Quebec, given the travel and tourism opportunities. Moreover, Air Canada has all necessary funding to complete the transaction and therefore it is not subject to financing conditions and does not require government or taxpayer assistance.
The transaction, valued at $520 million, remains subject to the finalization of definitive agreements, confirmatory due diligence, regulatory and shareholder approvals and other closing conditions usual in this type of transaction. There is no assurance that the transaction will be completed as described in this news release or at all.
#179
Join Date: Mar 2013
Programs: Aeroplan, Amex AeroPlat
Posts: 977
So im looking at a round trip flight for three on Air Transat for next Feb for $1800 all in. Air Canada Rouge equivalent is like $3000 to $4000.
Should I buy Air Transat ticket now?? They are non-refundable.
Should I buy Air Transat ticket now?? They are non-refundable.
#180
Join Date: Feb 2004
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no way the deal would close by Feb 2020 so you wouldn't get AQM/AQD/MLL/signature suite access So if $1800 was a deal,it'll still get you travel to your destination on an uncomfortable plane without lie flat seats one way or another