© Reuters. FILE PHOTO: Air Canada CEO Calin Rovinescu speaks during a panel discussion on cybersecurity at the 2016 Annual General Meeting of the International Air Transport Association (IATA) and the World Air Transport Summit in Dublin
(Reuters) – Air Canada (TO 🙂 has cut its price to accommodate Canadian tour operator Transat A.T. Inc (TO 🙂 with a deal valued at around C $ 188.7 million (C $ 143.86 million) compared to C $ 720 million previously, due to the drop in airline values after COVID-19 the companies said in a statement on Saturday.
Air Canada received approval from Transat shareholders last year on the deal with a sweetened share offering of $ 18.00 to bolster its leisure business.
Under the revised terms, Air Canada will purchase all of Transat's shares for $ 5 per share, a premium of approximately 30.5% over Transat's last deal on Friday.
"Air Canada intends to complete the acquisition of Transat at a reduced price and on changed terms," Air Canada CEO Calin Rovinescu said in a statement.
The transaction remains subject to shareholder approvals, court approvals, and other regulatory approvals in Canada and the European Union, Air Canada said.
($ 1 = 1.3117 Canadian dollars)
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