(Reuters) – Air Canada (TO:) has lowered its price to buy Canadian tour operator Transat A.T. Inc (TO:) with the deal now worth about C$188.7 million ($143.86 million), down from $720 million previously, reflecting the post-COVID-19 reduction in airline values, the companies said in a statement on Saturday.
Air Canada had secured Transat shareholders’ approval for the deal last year with a sweetened C$18.00 a share bid, to bolster its leisure business.
Under revised terms of the deal, Air Canada said it will acquire all shares of Transat for C$5 per share, representing a premium of about 30.5% to Transat’s last close on Friday.
“Air Canada intends to complete its acquisition of Transat, at a reduced price and on modified terms,” Calin Rovinescu, chief executive officer of Air Canada said in a statement.
The deal remains subject to shareholder approval, court approval and other regulatory approvals in Canada and the European Union, Air Canada said.
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