stats
globeinteractive.com: Making the Business of Life Easier

   Finance globeinvestor   Careers globecareers.workopolis Subscribe to The Globe
The Globe and Mail /globeandmail.com
Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space


Search

space
  This site         Tips

  
space
  The Web Google
space
   space



space

  Where to Find It


Breaking News
  Home Page

  Report on Business

  Sports

  Technology

space
Subscribe to The Globe

Shop at our Globe Store


Print Edition
  Front Page

  Report on Business

  National

  International

  Sports

  Arts & Entertainment

  Editorials

  Columnists

   Headline Index

 Other Sections
  Appointments

  Births & Deaths

  Books

  Classifieds

  Comment

  Education

  Environment

  Facts & Arguments

  Focus

  Health

  Obituaries

  Real Estate

  Review

  Science

  Style

  Technology

  Travel

  Wheels

 Leisure
  Cartoon

  Crosswords

  Food & Dining

  Golf

  Horoscopes

  Movies

  Online Personals

  TV Listings/News

 Specials & Series
  All Reports...

space

Services
   Where to Find It
 A quick guide to what's available on the site

 Newspaper
  Advertise

  Corrections

  Customer Service

  Help & Contact Us

  Reprints

  Subscriptions

 Web Site
  Advertise

  E-Mail Newsletters

  Free Headlines

  Globe Store New

  Help & Contact Us

  Make Us Home

  Mobile New

  Press Room

  Privacy Policy

  Terms & Conditions


GiveLife.ca

    

PRINT EDITION
Montreal bidder files Transat offer, seeks loan from government
space
space
By ERIC ATKINS
  
  

Email this article Print this article
Friday, June 14, 2019 – Page B1

The battle for Transat A.T. Inc. appears set to heat up as Montreal real estate investor Group Mach Inc.

submits a formal offer for the airline and vacation company that is still in talks for a friendly takeover with Air Canada.

Vincent Chiara, chief executive officer of Mach, said Thursday afternoon he would file a formal takeover proposal with Transat by evening for a deal worth $14 a share - trumping Air Canada's preliminary $13 offer.

Earlier in the day, Transat CEO Jean-Marc Eustache said he did not consider Mach's interest in the company, announced in a June 4 news release, to be an official bid yet and therefore wouldn't comment on it. The Air Canada talks that began in late May will continue until June 26, he added. "Should any other proposal be communicated to the company before or after the end of the exclusivity period, it will be addressed by our board of directors," Mr. Eustache said.

Some investors, however, are betting that the company will be sold for more than Air Canada is offering. Transat shares crept up on Thursday to close at $13.39, just shy of last week's high of $13.40 and 3 per cent higher than the Air Canada bid.

Two big shareholders in Transat have said Air Canada's all-cash offer, worth $520-million, is too low or poorly timed, raising doubts it will receive the required two-thirds approval from shareholders. FNC Capital of Montreal has also told The Globe and Mail it is interested in submitting an offer for Transat.

Mach said in a news release last week that its offer is conditional on $120-million in Quebec government financing. It has lined up a minority partner in TM Grupo Inmobiliario, a Spanish vacation property developer and hotel operator that does business in Mexico and the Mediterranean.

Mr. Chiara said Mach has submitted a business plan to the Quebec government's finance arm, Investissement Québec, and expects to know within a week if the government will provide the loan.

He said he is optimistic his bid is superior to that of Air Canada, given the higher price, in addition to the lack of overlapping airline operations that would be expected to draw the scrutiny of the Competition Bureau.

Transat employs 5,000 people and has a fleet of about 40 planes, depending on the season.

It sells tour and hotel packages in Europe and the Caribbean. In 2018, it spent $76-million on beachfront land in Puerto Morelos, Mexico, to build a resort, but has agreed to limit spending on that project while in talks with Air Canada.

Transat on Thursday posted a smaller profit in the second quarter as fuel costs rose and the Canadian dollar slipped against the U.S. greenback.

Transat's net income fell to $2.3-million or 6 cents a share from $7.9-million or 21 cents in the same period a year earlier. Updating the company's plane fleet also added costs.

Excluding a court settlement and other items, Transat's adjusted net loss was $6.3-million or 17 cents a share, compared with a loss of $500,000 or 1 cent in the second quarter of 2018. Revenue rose by 3.5 per cent to $897-million.

Expenses rose by 5.4 per cent, driven by a 13.5-per-cent jump in fuel costs and a 9-per-cent rise in salaries and benefits, outpacing the increase in revenue.

Annick Guerard, chief operating officer of Transat, said the company is facing "fierce competition" on its transatlantic routes this summer as WestJet and other carriers add new service and slash ticket prices.

"We are seeing pressure ... from WestJet in Europe this summer. They have added additional flights from Calgary to Paris and Dublin, and out of Toronto to Gatwick and Barcelona ... . They are increasing their presence, not only WestJet but others as well," Ms. Guerard said.

For this summer travel season, Mr. Eustache said bookings are up by almost 2 per cent and 64 per cent of seats are sold.

Ticket prices are little changed from a year ago, and Transat said the third-quarter results will be "slightly higher" than those of the same period in 2018.

TRANSAT A.T. (TRZ) CLOSE: $13.39, UP 6¢

Associated Graphic

Transat, which employs 5,000 people and has a fleet of about 40 planes, posted a smaller profit in the second quarter as fuel costs rose and the loonie slipped against the U.S. dollar.

BAYNE STANLEY/THE CANADIAN PRESS


Huh? How did I get here?
Return to Main Rob_Carrick Page
Subscribe to
The Globe and Mail
 

Email this article Print this article

space  Advertisement
space

Need CPR for your RSP? Check your portfolio’s pulse and lower yours by improving the overall health of your investments. Click here.

Advertisement

7-Day Site Search
    

Breaking News



Today's Weather


Inside

Rick Salutin
Merrily marching
off to war
Roy MacGregor
Duct tape might hold
when panic strikes


Editorial
Where Manley is going with his first budget




space

Columnists



For a columnist's most recent stories, click on their name below.

 National


Roy MacGregor arrow
This Country
space
Jeffrey Simpson arrow
The Nation
space
Margaret Wente arrow
Counterpoint
space
Hugh Winsor  arrow
The Power Game
space
 Business


Rob Carrick arrow
Personal Finance
space
Drew Fagan arrow
The Big Picture
space
Mathew Ingram arrow
space
Brent Jang arrow
Business West
space
Brian Milner arrow
Taking Stock
space
Eric Reguly arrow
To The Point
space
Andrew Willis arrow
Streetwise
space
 Sports


Stephen Brunt arrow
The Game
space
Eric Duhatschek arrow
space
Allan Maki arrow
space
William Houston arrow
Truth & Rumours
space
Lorne Rubenstein arrow
Golf
space
 The Arts


John Doyle arrow
Television
space
John MacLachlan Gray arrow
Gray's Anatomy
space
David Macfarlane arrow
Cheap Seats
space
Johanna Schneller arrow
Moviegoer
space
 Comment


Murray Campbell arrow
Ontario Politics
space
Lysiane Gagnon arrow
Inside Quebec
space
Marcus Gee arrow
The World
space
William Johnson arrow
Pit Bill
space
Paul Knox arrow
Worldbeat
space
Heather Mallick arrow
As If
space
Leah McLaren arrow
Generation Why
space
Rex Murphy arrow
Japes of Wrath
space
Rick Salutin arrow
On The Other Hand
space
Paul Sullivan arrow
The West
space
William Thorsell arrow
space





Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space

© 2003 Bell Globemedia Interactive Inc. All Rights Reserved.
Help & Contact Us | Back to the top of this page