(Reuters) - Real estate developer Group Mach Inc said on Tuesday its C$527.6 million bid to acquire Canadian tour operator Transat AT Inc does not need to rely on funding from Quebec, making the offer more attractive than Air Canada’s.
Earlier this month, Group Mach made a bid for Transat, topping an offer from the country’s largest airline Air Canada. Group Mach’s offer of C$14 per share to take Transat private is C$1 more than Air Canada’s offer.
Air Canada, however, has argued that its bid was more attractive than Mach’s as it was fully financed and did not require taxpayers’ assistance.
Montreal-based Transat is locked in an exclusivity period with Air Canada that ends on Wednesday.
Group Mach is hoping to expand in the leisure and hospitality business with the Transat deal, using its own expertise in developing Transat’s hotel chains.
Air Canada and Transat did not immediately respond to Reuters’ requests for comment.
Shares of Transat were up 2.9% at C$13.88, and those of Air Canada were down 1.5% at C$39.58.
Reporting by Debroop Roy in Bengaluru; Editing by Shinjini Ganguli
Our Standards: The Thomson Reuters Trust Principles.