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Air Canada Increases Transat Purchase Price To C$720 Mln

Air Canada (AC_A.TO, AC_B.TO) agreed to increase its purchase price for Transat A.T. Inc. to C$18 per share from C$13 per share, representing an aggregate purchase price of about C$720 million.

Letko Brosseau, Transat's largest shareholder holding about 19.3% of outstanding shares, entered into a lock-up and support agreement, confirming its support for the Air Canada acquisition.

Air Canada announced an increase in the break fee payable by Transat from C$15 million to C$40 million in case of termination of the agreement in certain circumstances, including upon acceptance of a Superior Proposal that is not matched by Air Canada.

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