Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, May 10, 2019

Article Excerpt

TRANSAT A.T. INC., $9.86, symbol TRZ on Toronto, is one of the largest tour operators in North America. Through its Transat and Air Transat brands, the Montreal-based company offers air travel, hotel stays and vacation packages to about 60 destinations in more than 25 countries. Those holiday spots include the U.S., Caribbean, Canada, and the U.K. In the recent winter season, Transat accounted for 22% of the 4.74 million Canadian seats available to sun destinations like Mexico and the Caribbean. That’s the same as WestJet’s (symbol WJA on Toronto) vacation business, but less than Air Canada’s (symbol AC on Toronto) 24% of the market. Canada’s largest tour operator for warm-weather destinations is Sunwing-Signature with 27% of the market. Sunwing is 49% owned by Europe’s TUI Group. On April 30, Transat announced that its board had formed a special committee of independent directors to evaluate several potential proposals from several interested parties, including Air Canada, WestJet, Sunwing, as well as several private equity firms. Transat’s…