Air Canada Outbid
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Re: Air Canada Outbid
Lock up agreement gives AC first right to match offers up to $14.
Re: Air Canada Outbid
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!
Oh ya. And the under funded real estate company wants the Quebec government to fund the deal. Nice!
Re: Air Canada Outbid
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Last edited by TSAM on Wed Apr 08, 2020 4:20 pm, edited 1 time in total.
Re: Air Canada Outbid
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Last edited by TSAM on Wed Apr 08, 2020 4:20 pm, edited 1 time in total.
Re: Air Canada Outbid
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;
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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Re: Air Canada Outbid
And conveniently 15 million was the number Transat was on the hook for if they walked away from AC
A mile of road will take you a mile, but a mile of runway can take you anywhere
Re: Air Canada Outbid
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.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
Re: Air Canada Outbid
Transat would have to pay the penalty if AC matches the offer and is rejected.Fanblade wrote: ↑Tue Jun 04, 2019 4:46 pmI 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.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
The difference in your numbers is $520 million for the company + the debt = the $1 billion sum.
Re: Air Canada Outbid
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?
Re: Air Canada Outbid
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.
This is the statement that has me wondering what it exactly means.
Re: Air Canada Outbid
I believe aircraft leases are typically kept off balance sheet.
Re: Air Canada Outbid
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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Re: Air Canada Outbid
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.
Re: Air Canada Outbid
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.
Re: Air Canada Outbid
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.iflyroads wrote: ↑Wed Jun 05, 2019 12:18 pmflyinhigh 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.
But your right the shareholders only care about $