Transat AT Inc.’s shareholders today approved the sale of the company to Air Canada for $5 per share.
The Montreal-based tour operator’s shareholders voted in a virtual meeting on Tuesday morning in favour of the sale, which had been recommended by the company’s leadership.
Transat would have faced an uncertain future if the deal hadn’t gone through, with the company taking steps this year to preserve cash amid a huge decline in revenue caused by the plunge in travel due to the pandemic.
The deal is expected to close in early 2021 following regulatory approval.
In October, the offering price was brought down to $5 from $18, reflecting the new market reality for travel-related industries since the start of the pandemic.
Transat’s shares were up 50 cents, or 9.54 per cent, at $5.79 in late morning trading on the Toronto Stock Exchange.