Transat provides status update regarding its discussions with Pierre Karl Péladeau for the acquisition of Transat

MONTRÉAL, May 14, 2021 /CNW Telbec/ - Transat A.T. Inc. ("Transat" or the "Corporation") wishes to update the market regarding its discussions with Mr. Pierre Karl Péladeau regarding the potential acquisition of all of the shares of Transat through his holding company Gestion MTRHP inc. ("MTRHP").

On April 7, 2021, Mr. Péladeau delivered to Transat a non-binding proposal contemplating a transaction pursuant to which MTRHP would acquire all of the shares of Transat for a consideration of $5.00 per share, payable in cash. Although this proposal required a response within two days, the parties have from that date and until May 13 continued their discussions on the basis of this proposal and it has been thoroughly reviewed by the special committee of independent directors responsible for evaluating any proposal to acquire the Transat shares with the assistance of financial and legal advisors.

Transat has taken note of Mr. Péladeau's public statements of yesterday but has not received any formal communication on this matter.

Transat announced on April 29, 2021 that it had reached an agreement with the Government of Canada to borrow up to $700 million in additional liquidity through the Large Employer Emergency Financing Facility (LEEFF). This additional liquidity allows the company to plan for the resumption of its operations and the implementation of its strategic plan for the coming years.

Caution regarding forward-looking statements

This press release contains certain forward-looking statements about Transat concerning a potential transaction involving the acquisition of all the shares of Transat. These statements are based on certain assumptions deemed reasonable by Transat, but are subject to certain risks and uncertainties, several of which are outside the control of Transat, which may cause results to vary materially. In particular, the completion of a transaction will be subject to the negotiation and execution of a definitive agreement satisfactory to both parties, the due diligence review by MTRHP, the approval of the shareholders of Transat, the approval of applicable regulatory and governmental authorities, Court approval of a proposed plan of arrangement and the completion of other conditions customary for this type of transaction. Moreover, the statements regarding the benefits of the contemplated transaction will be subject to the plans of the acquirer following the transaction. Transat disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by securities laws.

About Transat

Transat A.T. Inc. is a leading integrated international tourism company specializing in holiday travel. Under the Transat and Air Transat banners, the Corporation offers vacation packages, hotel stays and air travel to some 60 destinations in over 25 countries in the Americas and Europe. Transat is firmly committed to sustainable tourism development, as reflected in its multiple corporate responsibility initiatives over the past 14 years and obtained Travelife certification in 2018. The Corporation is based in Montréal (TSX: TRZ).

SOURCE Transat A.T. Inc.

Media: Christophe Hennebelle, Vice-President, Human Resources and Corporate affairs, 514 987-1660, ext. 4584; Financial analysts: Denis Pétrin, Chief Financial Officer, 514 987-1660

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