Transat check­ing out of Ocean Ho­tels, ex­pects $190M from part­ner H10 Ho­tels

The Guardian (Charlottetown) - - BUSINESS -

MON­TREAL — Travel com­pany Transat A.T. Inc. (TSX:TRZ) has signed a deal to sell its 35 per cent share of Ocean Ho­tels for about $190 mil­lion.

The buyer is Span­ish com­pany H10 Ho­tels, Transat’s part­ner in the joint ven­ture, which op­er­ates re­sorts in Mex­ico, Do­mini­can Repub­lic and Cuba. Shares in Transat jumped more than 10 per cent af­ter the agree­ment was an­nounced.

Transat says the pro­ceeds from the sale of its mi­nor­ity in­ter­est in Ocean Ho­tels as well as the sale of some of its op­er­a­tions in France and Greece last year will help sup­port the devel­op­ment of its own ho­tel oper­a­tion.

The deal is ex­pected to close by Nov. 2.

Transat CEO Jean-Marc Eus­tache said be­ing a mi­nor­ity owner was no longer “an in­ter­est­ing use” of the com­pany’s cap­i­tal.

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