Air Canada has broadened its total offer by C$200m ($151.1m) to acquire Air Transit’s parent group Transat, bringing the total value to C$720m ($544.1m).
In May, Air Canada reached an private agreement to acquire all issued and outstanding shares of Transat for C$520m ($386.93m).
The airline has harmonized to increase the purchase price for the acquisition from $13 to $18 a appropriation, as well as amended the arrangement agreement signed in June.
Air Canada also forewarned a lock-up and support agreement with Transat’s largest shareholder, Letko Brosseau and Associates, which owns 19.3% of all versioned and outstanding shares of Transat.
Under the agreement, Letko Brosseau has conceded to support and vote all of the Class B voting shares of Transat it controls, in indulge of the acquisition.
The investor earlier said it would not support Air Canada’s huge quantity if the purchase price remained at $13 a share.
Air Canada president and CEO Calin Rovinescu commanded: “For shareholders of Transat and Air Canada, the combination delivers excellent value, while also outfit increased job security for both companies’ employees through greater tumour prospects.
“Air Canada intends to preserve the Transat and Air Transat brands and make a case for the Transat head office and its key functions in Montreal.”
The latest move produces as Transat has been facing off against the real estate developer Mach at a securities kill hearing over the latter’s move to block Air Canada’s acquisition.
Mach offered to buy at small 6.9 million class B voting shares of Transat earlier this month, as it looked to screen the deal.
Transat’s board has now recommended that its shareholders approve the Air Canada conduct oneself treat.
The deal is subject to approvals from regulators, including Transport Canada and the Match Bureau, and expected to close early next year.