Company News

BUZZ-Transat falls after accepting Air Canada offer, but still above bid price

** Shares of Canadian tour operator Transat fall ~7% to C$13.20 after accepting Air Canada’s takeover offer following the end of an exclusivity period on Wednesday

** TRZ still trading above Air Canada’s offer of C$13 per share, which was below C$14/share offer from real estate developer Group Mach

** AC’s offer values TRZ at C$520 mln ($396.7 mln)

** The agreement between AC and TRZ that still requires shareholder approval, has previously been opposed by TRZ’s largest shareholder, according to a report by the Globe and Mail last month

** The deal includes a breakup fee of C$15 million payable by TRZ in case of termination in certain circumstances, including acceptance of a fully financed proposal of C$14/shr or more that is not matched by AC

** Up to Wednesday, TRZ stock had surged more than 34% since talks with AC began in May

** Air Canada’s shares up 2.5% at C$40.34 on Thursday morning ($1 = C$1.31) (Reporting by Debroop Roy in Bengaluru)