MONTREAL — Transat AT Inc. says a pair of proxy advisory services have recommended shareholders support its revised deal to be acquired by Air Canada.
The revised terms will see Air Canada pay $5 per share for the parent company of Air Transat, compared with the $18 per share originally pledged in its takeover bid.
The revision brings the total sale price down by 72 per cent to $190 million from $720 million.
The travel company says Institutional Shareholder Services Inc. and Glass, Lewis & Co. LLC have recommended that Transat shareholders vote for the revised acquisition transaction.
The offer has been endorsed by Transat’s board of directors but must also be approved by a two-thirds majority vote by Transat’s shareholders at a special meeting set for Dec. 15.
ISS and Glass Lewis are independent, third-party proxy advisory firms that made recommendations to large investors including pension funds, investment managers, mutual funds and other institutional shareholders.
This report by The Canadian Press was first published Dec. 7, 2020.
Companies in this story: (TSX:AC, TSX:TRZ)
The Canadian Press