Air Canada in talks to buy tour operator Transat in C$520 million deal!

Two Air Canada Boeing 737 MAX 8 aircrafts are seen on the ground as Air Canada Embraer aircraft flies in the background at Toronto Pearson International Airport in Toronto, Ontario, Canada, March 13, 2019. 

(Reuters) - Air Canada said on Thursday it is in talks to buy Canadian tour operator Transat A.T. Inc in an all-cash deal valued at C$520 million ($387.51 million) as the airline looks to create a Montreal-based global travel services company.

Transat said it has agreed to a 30-day period of negotiations with Air Canada to finalize a deal. As part of the deal, Transat shareholders will receive C$13 per share, a premium of 23% to its Wednesday close.

The deal allows Air Canada to expand its hub at Montréal-Trudeau Airport, where it has added 35 new routes since 2012, said Chief Executive Officer Calin Rovinescu in a statement.
The deal comes days after WestJet Airlines received a C$3.5 billion buyout offer from billionaire Gerry Schwartz's private equity firm Onex Corp.

Shares of Air Canada have risen 49.8% so far this year, while those of Transat have jumped 78% in this period on the Toronto Stock Exchange.