Real estate developer Group Mach Inc has dropped its $528 million takeover proposal for Transat AT Inc after the Canadian tour operator accepted a lower offer from Air Canada last week.
Group Mach’s proposal for Transat became “null and void” once the leisure company’s board accepted Air Canada’s offer as it was one of the conditions set by the real estate developer, Mach’s executive vice-president of mergers and acquisitions Alfred Buggé said.Mach’s offer had raised questions since the company first said it needed government financing to complete the deal, a condition it waived before the deal with Air Canada was announced.
A portfolio manager at PenderFund Capital Management, which holds 3.09 per cent of Transat shares, had said last week that they did not believe Air Canada’s offer reflected the value of the company.