June 21 - Transat A.T. Inc. announces that the ongoing discussions with Mr. Pierre Karl Péladeau concerning the potential acquisition of all of the shares of Transat through his company Gestion MTRHP inc. have ended.

 

On April 7, 2021, Mr. Péladeau delivered to Transat a non-binding proposal contemplating a transaction pursuant to which MTRHP would acquire all of the shares of Transat for a consideration of $5.00 per share, payable in cash. Considering the current share price, the price offered no longer provides a reasonable basis to envision receiving the level of shareholder approval required in order to allow the transaction to proceed. Accordingly, MTRHP confirmed to the Corporation that it was withdrawing from the discussions.

 

In light of the foregoing, the work of the special committee charged of reviewing strategic alternatives will cease, and Transat intends to focus its efforts on the implementation of its strategic plan and on the upcoming restart of its operations and flights, on July 30.

 

As contemplated in its strategic plan, the outline of which was revealed publicly on June 10, Transat also intends to examine possibilities to optimize its financing structure, which could include the issuance of shares of its capital or bond financing on more favorable terms than those attached to a portion of the liquidities made available to Transat under the Large Employer Emergency Financing Facility (LEEFF).

 

 

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