Gestion MTRHP Inc. 'sDecember 22 proposal is for$5.00 and is not supported by binding, fully committed financing- Transat Board reconfirms its unanimous support FOR the acquisition by Air Canada
These reports may mislead some investors into believing that there is an offer from Mr.
Transat therefore sets the record straight as follows:
- contrary to media reports, MTRHP's current proposal is actually for
$5.00 per share (not$6.00 ), - the proposal lacks binding, fully committed financing or evidence of sufficient cash on hand for the purpose of making the acquisition,
- the proposal lacks financing to support Transat's 2021 working capital requirements of approximately
$500 million .
"This offer, without demonstrated committed financing, appears designed to attempt to adversely influence the regulatory approval process by suggesting that an alternative exists, should the regulatory authorities choose to reject the arrangement between Transat and Air Canada. We continue to believe that Air Canada's proposal continues to be the best option for Transat's future, especially in the context of the pandemic and its devastating effect on airlines," said Mr.
Earlier Proposals also Inferior and not in Transat's Best Interests
Transat also confirms that the earlier competing proposal referenced in its press release of
This, among other issues and concerns with MTRHP's proposal, ultimately led the Board to conclude, after having carefully and thoroughly examined the terms of the MTRHP proposal, including the supplementary information obtained from its investigations of, and discussions with, MTRHP, with the assistance of its legal and financial advisors, that MTRHP's proposal was not in the best interest of Transat and its stakeholders and not a "superior proposal" under the terms of the arrangement agreement with Air Canada.
In order to finalize the said earlier proposal, MTHRP entered in
Transat Board Reconfirms its Unanimous Support for the Arrangement with Air Canada
Transat's Board and the special committee of the Board, supported by their financial and legal advisors, reiterate their unanimous recommendation that the arrangement with Air Canada is in the best interests of Transat and its stakeholders and is fair to Transat shareholders, who have approved the Arrangement by 91% of the votes cast at the special meeting held on
Caution regarding forward-looking statements
This press release contains certain forward-looking statements about Transat concerning a potential transaction involving the acquisition of all of the shares of Transat. These statements are based on certain assumptions deemed reasonable by Transat, but are subject to certain risks and uncertainties, several of which are outside the control of Transat, which may cause results to vary materially. Transat disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by securities laws.
About Transat
Transat is a leading integrated international tourism company specializing in holiday travel. It offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands to some 60 destinations in more than 25 countries in the
www.transat.com
SOURCE
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