Air Transat yesterday shared that the Superior Court of Québec had issued a final order approving its arrangement with Air Canada. Moreover, the deal was approved by 91.05% of the votes cast by shareholders at a special meeting held on December 15th, 2020.
One hurdle out of the way
Last week, Air Transat announced that it expects the carrier’s acquisition by Air Canada to be completed by February. The Montreal-based outfit said that it was waiting for authorities to confirm approval. Now, one key step has been taken.
Nonetheless, the transaction is still subject to other regulatory approvals. Notably, the airlines have to wait for considerations under the likes of the Canada Transportation Act and the European Union Council Regulation (EC) No. 139/2004.
Preparations need to be made
Such a transaction would shake up the setup of Air Transat. Subsequently, according to a press release seen by Simple Flying, the operator issued some important notices to its shareholders.
“Registered shareholders of Transat wishing to receive the share consideration must return the Letter of Transmittal and Election Form, attached to Transat’s management proxy circular dated November 12, 2020, to AST Trust Company (Canada), acting as the depositary, by 5:00 p.m. (Montréal time) on or before the date that is two business days prior to the date of completion of the Arrangement (the “Election Deadline”),” the press release reads.
“Non-registered shareholders of Transat should carefully follow the instructions of the intermediary holding their Class A variable voting shares or Class B voting shares of Transat (together, the “Shares”) on their behalf. Transat will include notice of the Election Deadline in a press release disseminated over newswire service in Canada at the latest on the business day immediately before the Election Deadline.”
The statement adds that investors who acquire shares of Air Transat shortly before the finalizing of the transaction are advised that they may not have enough time in order to submit a duly completed letter of transmittal and election form by the election deadline in regards to the shares. So, they should communicate with their intermediaries such as their brokers or trust companies before making such a move.
A significant move
Altogether, the transaction with Air Canada would give Air Transat the support needed following the overwhelming impact of the global health crisis. The airline has been busy trying to limit the damage, but the deal will allow it to recover with a solid backing.
Simple Flying reached out to Air Canada and Air Transat for comment about the transaction. We will update the article with any further information from the carriers.
What are your thoughts about the court’s approval of the transaction between Air Canada and Air Transat? Do you feel that the deal is a good move for those involved? Let us know what you think of the situation in the comment section.