Groupe Mach’s attempt to buy up Transat shares ‘abusive’ in light of deal
Tribunal examining move to block pending sale to Air Canada
MONTREAL — Transat A.T. is facing off against Montreal developer Groupe Mach at a securities tribunal hearing over Mach’s move to block the tour operator’s sale to Air Canada.
The session at a downtown office tower on Thursday follows Transat’s complaint earlier this week that called on authorities to bar the real estate investment company from scooping up a plurality of Transat shares in a bid to derail the pending acquisition by Canada’s biggest airline.
Groupe Mach lawyer Marc Duchesne called on the administrative tribunal to let shareholders decide, citing what he deemed their “fundamental right ... to choose.”
Transat’s counsel dubbed the offer of $14 per share — an eight per cent premium over Air Canada’s $13-per-share purchase agreement — “abusive, misleading and coercive.”
Lawyer Alain Riendeau said the proposition fosters a “false sense of uncertainty and risk” in order to coax shareholders to sell their stake, “against their own interests and those of other shareholders,” according to the tour operator.
Alfred Bugge, Groupe Mach’s head of mergers and acquisitions, called Transat’s accusations “baseless” and “smoke and mirrors,” saying any concerns about a hostile takeover should be allayed by the fact that the three biggest shareholders have a nearly 37 per cent stake.
Transat spurned Groupe Mach’s effort earlier this summer to top Air Canada’s $520million deal.
Groupe Mach now hopes to secure “at least” 6.9 million Class B shares, or 19.5 per cent, at a cost of about $97 million. Chief executive Vincent Chiara said he aims to then vote against Air Canada’s offer, which needs at least two-thirds support from shareholders.
A decision from the tribunal is expected this week.
Shareholders are slated to vote Aug. 23 on the Air Canada offer, which would still face scrutiny from transportation and competition authorities.