Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, May 24, 2019

Article Excerpt

TRANSAT A.T., $11.53, symbol TRZ on Toronto, is one of the largest tour operators in North America. Through its Transat and Air Transat brands, the Quebec-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. On May 16, 2019, Transat and Air Canada (symbol AC on Toronto) announced that they had entered into an exclusive 30-day agreement to complete Air Canada’s $13-a-share offer for all of the Quebec-based tour operator’s outstanding shares. Both firms are headquartered in Montreal, and the deal, which values Transat at $520 million, is a “Made-in-Quebec” solution. That should help it meet the regulatory requirements of the provincial government. A sale to Air Canada also lets the national carrier expand its Montreal hub, which serves more than 10 million passengers each year. Transat is now trading below Air Canada’s offer, which indicates that investors are not expecting a higher…

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