Transat AT Inc. hit hard by the coronavirus pandemic dropped to an eight-year low as investors bet against a travel recovery and the completion of a takeover by Air Canada.
Shares of Montreal-based Transat have slumped every trading this month except one time. The stock’s losing that is 13-session is its longest since 2008.
Transat has lost about C$475 million ($357 million) in market value this because of rising odds that a proposed takeover by Air Canada at C$18 a share will fall aside year. The deal was struck in 2019, but has yet to be approved by competition authorities august.
Transat’s shares are trading well below the C$18 offer from Air Canada
Transat is interested in brand new sources of financing, but it “may require Air Canada’s consent that is prior to raise cash as a result of clauses in the takeover agreement, the organization said Sept. 10.
Canada plus the U.S. recently extended an agreement to limit travel between the two countries until Oct. 21, while the government that is Canadian to advise residents against non-essential travel outside the country. Passengers coming into Canada must quarantine for two weeks, though Transport Minister Marc Garneau said week that is final government may loosen that restriction.
Previously, the travel company said the Q3 included one week of operations as it resumed flying on July 23 after shutting down April 1 due to the pandemic that is COVID-19.
Transat is flying to 11 destinations which can be European France, great Britain and Portugal as well as to Mexico, the Dominican Republic and Haiti. It’s also managing a program that is domestic Montreal, Toronto, Calgary and Vancouver. Transat AT Inc. hit hard by the coronavirus pandemic dropped.
The company reported a loss that is net to shareholders of $45.1 million or $1.20 per share for its most recent quarter compared having a loss of $1.5 million or four cents per share per year earlier, while revenue totalled $9.5 million, down from $698.9 million.