Air Canada Outbid

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Diadem
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Air Canada Outbid

Post by Diadem »

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ToolShed
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Re: Air Canada Outbid

Post by ToolShed »

Lol by $1
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Sharklasers
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Re: Air Canada Outbid

Post by Sharklasers »

ToolShed wrote: Tue Jun 04, 2019 9:51 amLol by $1
$1 a share. So about 41 million dollars....
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rudder
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Re: Air Canada Outbid

Post by rudder »

Lock up agreement gives AC first right to match offers up to $14.
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snowcone
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Re: Air Canada Outbid

Post by snowcone »

Is Transat even allowed to entertain offers right now? Sounds like bargaining in bad faith.

Oh ya. And the under funded real estate company wants the Quebec government to fund the deal. Nice!
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tsgas
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Re: Air Canada Outbid

Post by tsgas »

snowcone wrote: Tue Jun 04, 2019 10:12 am Is Transat even allowed to entertain offers right now? Sounds like bargaining in bad faith.

Oh ya. And the under funded real estate company wants the Quebec government to fund the deal. Nice!
In the PRQ socialism always overrides capitalism.
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TSAM
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Re: Air Canada Outbid

Post by TSAM »

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Last edited by TSAM on Wed Apr 08, 2020 4:20 pm, edited 1 time in total.
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Re: Air Canada Outbid

Post by TSAM »

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Fanblade
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Re: Air Canada Outbid

Post by Fanblade »

More serious an offer than I thought.

real estate developer and owner in Quebec proposes the acquisition of all issued and outstanding voting shares (the “Shares”) of Transat AT Inc. (TSX: TRZ) (“Transat” or the “Company”), at a price of $14.00 cash per Share (the “Offer Price”) based on a deal value exceeding $1B, including substantial off balance sheet debt which we estimate between $1.1B and $1.2B.

Looks like one of Transats current partners in Mexico doesn’t want to lose their partner.

Upon closing of the Transaction, TM Grupo Inmobiliario (“TM”), the largest residential and leisure real estate developer in Spain and preferred hotel supplier of Transat in Mexico, shall contribute, in exchange for a minority equity stake in Transat, approximately $15,000,000 in cash and roll-over its three operating hotels in Mexico with approximately 1,000 rooms under the well-established banner The Fives Hotels and Residences into Transat’s platform (the “TM Roll-Over”) thereby immediately generating approximately $15,000,000 of EBITDA for Transat;
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skypirate88
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Re: Air Canada Outbid

Post by skypirate88 »

And conveniently 15 million was the number Transat was on the hook for if they walked away from AC
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Fanblade
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Re: Air Canada Outbid

Post by Fanblade »

skypirate88 wrote: Tue Jun 04, 2019 4:38 pm And conveniently 15 million was the number Transat was on the hook for if they walked away from AC
I believe AT has the right to walk, without penalty, if an unsolicited offer beat the AC offer by a dollar. The thing is this offer may be worth far more than a dollar when considering the entire offer. I’m just going by the article but it says the offer is worth 1 Billion vs AC’s offer of 520m.
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tsgas
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Re: Air Canada Outbid

Post by tsgas »

Fanblade wrote: Tue Jun 04, 2019 4:46 pm
skypirate88 wrote: Tue Jun 04, 2019 4:38 pm And conveniently 15 million was the number Transat was on the hook for if they walked away from AC
I believe AT has the right to walk, without penalty, if an unsolicited offer beat the AC offer by a dollar. The thing is this offer may be worth far more than a dollar when considering the entire offer. I’m just going by the article but it says the offer is worth 1 Billion vs AC’s offer of 520m.
Transat would have to pay the penalty if AC matches the offer and is rejected.
The difference in your numbers is $520 million for the company + the debt = the $1 billion sum.
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Victory
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Re: Air Canada Outbid

Post by Victory »

The acquiring firm's cost is both debt + equity of the acquired firm. AC can't buy Transat and not assume their debt. How would that work?
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Fanblade
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Re: Air Canada Outbid

Post by Fanblade »

including substantial off balance sheet debt which we estimate between $1.1B and $1.2B.

This is the statement that has me wondering what it exactly means.
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Victory
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Re: Air Canada Outbid

Post by Victory »

I believe aircraft leases are typically kept off balance sheet.
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tsgas
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Re: Air Canada Outbid

Post by tsgas »

Victory wrote: Tue Jun 04, 2019 6:20 pm I believe aircraft leases are typically kept off balance sheet.
True but there has to be reserves for the mtce of the A/C and engines , prior to the A/C being returned at the end of the leases.
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laserstrike
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Re: Air Canada Outbid

Post by laserstrike »

If anyone thinks a dollar a share is going to stop Calin if he really wants AT and the planes/pilots/routes, I have a bridge to sell you.
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flyinhigh
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Re: Air Canada Outbid

Post by flyinhigh »

I wouldn't worry about other offers to much.

https://aircanada.mediaroom.com/2019-06 ... -Companies
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iflyroads
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Re: Air Canada Outbid

Post by iflyroads »

flyinhigh wrote: Wed Jun 05, 2019 11:49 am I wouldn't worry about other offers to much.

https://aircanada.mediaroom.com/2019-06 ... -Companies


Share holders would have to approve the AC offer.

Some might want to take the highest one as they will end up with more money.
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Fanblade
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Re: Air Canada Outbid

Post by Fanblade »

iflyroads wrote: Wed Jun 05, 2019 12:18 pm
flyinhigh wrote: Wed Jun 05, 2019 11:49 am I wouldn't worry about other offers to much.

https://aircanada.mediaroom.com/2019-06 ... -Companies


Share holders would have to approve the AC offer.

Some might want to take the highest one as they will end up with more money.
There is zero point participating in a bidding war from AC perspective. They will wait and then match/beat or hold their offer at deadline.

But your right the shareholders only care about $
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