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moeman

Someone is interested in Transat

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https://worldairlinenews.com/2019/04/30/transat-at-inc-announces-preliminary-discussions-concerning-a-potential-sale-of-the-corporation/?fbclid=IwAR3OLyKLz1bvyckgXNssj29oP4BvDpqJKKtlf31yQd8qNafMcgV_FL4Zj6U

 

Transat AT Inc announces preliminary discussions concerning a potential sale of the corporation

Transat AT, Inc., the parent of Air Transit, has made this announcement:

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The Corporation announces being in preliminary discussions with more than one party concerning a potential transaction involving the acquisition of the Corporation.

These discussions result from expressions of interest received by the Corporation. The Corporation has formed a special committee of independent directors to evaluate the proposals with the assistance of financial and legal advisors, consider, and if deemed advisable, undertake a process for the formal review of strategic alternatives, consider any alternative proposal, and make recommendations to the Board of Directors in the best interests of the Corporation and all its stakeholders.

This situation has no impact on the clients or employees of Transat, nor on its operations, which are continuing as usual.

The discussions are at a preliminary stage. No decision has been made as to any potential transaction. There can be no assurance that any transaction will take place. The Corporation does not intend to provide further updates or comments with respect to the foregoing except as required by law.

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https://www.cbc.ca/news/business/air-transat-sale-1.5116543

 

Air Transat shares soar 43% after airline says sale of company is possible

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Company that owns Air Transat says more than 1 party likely to make bids

The Canadian Press · Posted: Apr 30, 2019 10:24 AM ET | Last Updated: 2 minutes ago
 
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Transat AT says it is in talks with more than one party for possible sale. (Submitted by Matt Lino)

Shares of Transat AT Inc. soared more than 40 per cent Tuesday after the tour and travel company announced preliminary talks regarding the possible sale of the company.

On the Toronto Stock Exchange, shares of the parent company of Air Transat, gained more than 43 per cent, or $2.44, at $8.11 in midday trading. Shares reached a high of $8.85, which was still short of its 52-week high.

The Montreal-based company said before its annual meeting that it is in talks with more than one party regarding a potential transaction following expressions of interest it received.

Transat said it has formed a special committee of independent directors to evaluate the proposals with the assistance of financial and legal advisers.

"I want to reiterate that the discussions are at a preliminary stage and no decision has been made on a potential transaction," Transat AT chief executive Jean-Marc Eustache told shareholders at the beginning of the meeting.

Turnaround plan

The company has embarked on a financial turnaround and plans to build a network of hotels on sun destination beaches in the hope that this will better position it in the face of increased competition from Canadian rivals such as Air Canada Rouge, WestJet Vacations and Sunwing Airlines.

Transat did not name the potential bidders, but analyst Benoit Poirier of Desjardins Capital Markets said they could be the same groups that have expressed interest in Thomas Cook.

While the stock price has surged, Poirier says it was still well below Transat's "intrinsic value" which he has conservatively pegged at $12 per share based on surplus cash, value of land and earnings.

Transat shares were changing hands at $8.13 in the afternoon on Tuesday, up $2.46 from Monday's level.

Premier weighs in

Quebec Premier François Legault co-founded Air Transat in 1986 and was CEO of the company before entering politics. He told the CBC the potential sale was a "shock for me."

"I'm thinking about the employees," he said. "For me it's important to do everything we can to keep the headquarters in Quebec." He said he no longer has shares but because of his personal connection Economy Minister Pierre Fitzgibbon will be handling the file.

Air Transat was founded 33 years ago by a group of businessmen, including Eustache and Legault, who left the company in 1997 before making the leap into politics.

The main shareholder of the tour operator — which has some 5,000 employees — is Letko, Brosseau and Associates with a stake of 18.14 per cent and the Quebec Federation of Labour's Solidarity Fund with 11.58 per cent.

A request for comment by Letko from CBC News was not immediately returned on Tuesday.

Quebec's pension plan, the Caisse de depot et placement du Quebec, is the fourth largest owner of the company, with 5.84 per cent interest.

Transat offers vacation packages, hotel stays and air travel under the Transat and Air Transat brands.

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Quebec Premier François Legault co-founded Air Transat in 1986 and was CEO of the company before entering politics. He told the CBC the potential sale was a "shock for me."

"I'm thinking about the employees," he said. "For me it's important to do everything we can to keep the headquarters in Quebec."

I suppose if AC were to buy them, it would satisfy that requirement.

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I think it's premature to say that the potential buyer would be a Canadian company.

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My money is on WJ. I hear this whole Max thing has the board concerned about not having a diversified fleet. One AD and your entire business could be impacted.

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43 minutes ago, Jumpy said:

My money is on WJ. I hear this whole Max thing has the board concerned about not having a diversified fleet. One AD and your entire business could be impacted.

And it has only taken 23 years for them to come to that conclusion ????

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4 hours ago, moeman said:

keep the headquarters in Quebec

 

To quote Hollis Harris:

"Head office might be a receptionist and a janitor.

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  • Haha 1

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6 hours ago, moeman said:

I suppose if AC were to buy them, it would satisfy that requirement.

Only in a sense that Google places AC's headquarters at the end of Cote Vertu Blvd in St-Laurent. You have to appreciate that for many francophone nationalists, Air Canada is still Canadian, the old English speaking Crown corp. That's the only baggage AC can't ever lose in those circles. The image has mellowed a bit over the past five decades or so when top Air Canada executives - and some union leaders for that matter - couldn't speak a word of French, not even bonjour. I'm going back before Pierre Jeanniot.

Of course, if Air Canada was ever allowed to move its HQ to Toronto, there would be howls of indignation...

Edited by dagger

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4 hours ago, Jumpy said:

My money is on WJ. I hear this whole Max thing has the board concerned about not having a diversified fleet. One AD and your entire business could be impacted.

I would be very surprised if it’s WestJet. Swoop and the introduction of the 787 has the investment community wondering already if they have bitten off more than they can handle. Adding a merger/takeover of AT would add to that unease.

My money is on AC. Similar fleet once the 310s are gone. Roll it all into Rouge and they’re done. 

 

 

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5 minutes ago, 47north said:

Roll it all into Rouge and they’re done. 

 

 

The work force integration would be hugely messy at least for a while.  I'm not sure how TS pilots are treated, but TS FAs wouldn't enjoy working under Rouge conditions.

TS management must be hugely motivated to do something, though.  They run a good airline, but struggle financially.  With Rouge seemingly ever expanding and ULCCs now in the market things aren't going to gt any easier for TS.

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'Internationally, potential buyers could include travel operators like Germany’s TUI Group, which already owns 49 per cent of Toronto-based Sunwing Travel Group Inc.

A European owner could make sense given the importance of transatlantic flights to Transat. In the last half of 2018, approximately 75 per cent of its total revenue came from transatlantic flights, according to a January National Bank report.'

At the meeting, Transat also amended its foreign ownership rules to fall in line with federal regulations adopted in May 2018.

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5 hours ago, Fido said:

 

To quote Hollis Harris:

"Head office might be a receptionist and a janitor.

How much of a mess can a receptionist make that requires a janitor?

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24 minutes ago, vanishing point said:

How much of a mess can a receptionist make that requires a janitor?

Equality, my man, equality.

The public perception of the two persons would be..................... for equality ..... man/woman  ..........and  would assume .........receptionist = female...............janitor = man😉

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10 hours ago, Kip Powick said:

Equality, my man, equality.

The public perception of the two persons would be..................... for equality ..... man/woman  ..........and  would assume .........receptionist = female...............janitor = man😉

Are you saying that a woman is not capable of being a janitor?  I hope not because a woman can do anything a man can do you know!

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21 hours ago, rudder said:

It would have to be either SWG or AC.

My bet is AC.

Oh please God, no !

 Let's all pray together, "Not Air Canada"

 I am going way out there and guessing,  Husky Oil.

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41 minutes ago, seeker said:

Are you saying that a woman is not capable of being a janitor?  I hope not because a woman can do anything a man can do you know!

Really..???

..can they write their name in the snow..........😉

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11 minutes ago, Vsplat said:

Kip, do you really want to see that bet called?

Well, even at my age, and no hands, I can do it but in all honesty, I have never seen a woman try..I suppose some can if their name was short....Ida, Eve,  and so on, but can they do their COMPLETE first, middle and last name ?????🤣

 

Not much going on in this forum, is there ??? In the hopes of adding a bit of mid-week levity, I give you this........

 

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It would appear that TRZ received an unsolicited offer. The TRZ BOD has a fiduciary obligation to maximize shareholder value. The TRZ BOD could simply recommend to the shareholders that the offer be rejected. There may even be a poison pill in the event that an unsolicited or unsupported offer that would have the effect of expanding the share volume.

My guess is that the unsolicited offer was not that bad so now the TRZ BOD wants to stimulate an auction to see if it can solicit a better offer from this party or a better offer from another party.

Bottom line - it appears that TRZ is about to be sold.

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2 hours ago, Kip Powick said:

Really..???

..can they write their name in the snow..........😉

I bet if you do a search on the interwebs you'll be able to find that exact thing (although I'm not going to be the one to check).  Rule 34.

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