Montreal (TAN): Canadian tour company Transat AT Inc has announced its net income results for Q3 that ended July 31. The firm generated CAD 698.9 million (USD 526.39 million) revenue during this period, a 5.2% rise as compared to the corresponding period in 2018.
However, there was a net loss of CAD 11 million to the company. This loss is attributable to the potential acquisition of Transat by Air Canada, the largest airline and flag carrier of Canada. It includes professional fees of CAD 6 million and compensation expenses of CAD 7.7 million in connection with the acquisition transaction.
In August this year, the Superior Court of Quebec issued a final order approving the plan of arrangement with Air Canada. At a special meeting of Transat held on August 23, the shareholders have overwhelmingly approved the arrangement and 94.77% has voted in its favour.
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“We’re very satisfied with the strong support received from our shareholders and the final approval of the arrangement plan. The planned transaction is good news for our shareholders, our employees, our clients and our community, and we’re currently working to obtain the required regulatory approvals to complete it,” stated Transat President and CEO Jean-Marc Eustache.
Air Canada will acquire all issued and outstanding Class A variable voting shares and Class B voting shares of Transat for CAD 18 per share. The transaction is expected to be completed by Q2 2020, if certain customary closing conditions and regulatory approvals are met.
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Transat AT Inc is an international tourism company that operates under the Transat and Air Transat banners. It specialises in holiday travel and offers vacation packages, hotel stays and air travel. Air Transat is the third largest airline of Canada, serving around 60 destinations in 25 countries.
After the deal closes, Air Transat will be able to continue to operate flights under its own brand and Air Canada has promised to retain Transat employees and headquarters in Montreal, said FlightGlobal. This collaboration will offer more destinations, connections and frequencies to the passengers, Air Canada added.
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