Flight Dashboard has reported an intervention on behalf of Canadian financial judges to block Group Mach, a real estate firm, from obstructing Air Canada´s intended acquisition of Transat AT, the parent company of carrier Air Transat, the news venue said.
Group Mach had disclosed on an offer to purchase at least 6.9 million voting shares in Transat AT — amounting to 19.5% of the company — at a price of CDN 14 per share. At the time this was a higher price than the CDN 13 per share being offered by Air Canada for Transat AT.
The tribunal has accepted an application by Transat AT to block the Group Mach offer. The decision was not unanimous — two judges agreed but a third dissented — but the majority view has prevailed.
The majority ruling means Group Mach is barred from acquiring any Transat AT shares under its scheme, and also forbidden from using proxies associated with shares deposited under it.
Air Canada has since raised its offer for Transat AT to CDN 18 per share.
Transat AT shareholders are set to meet on 23 August to consider and vote on approving the Air Canada agreement.