Proceeds to be used to pay down indebtedness
MONTREAL, Dec. 14,
2023 /CNW/ - Transat A.T. Inc. ("Transat" or
the "Corporation") entered into a sale and purchase agreement for
its 50 % equity interest in the Armony Luxury Resort & Spa,
Marival Collection (previously known as Rancho Banderas All Suites
Resort), located near Puerto
Vallarta on the Pacific coast of Mexico (the "Hotel"), to its co-shareholder,
the owner of the Marival Group. The transaction in the amount of
US$15.5 million is expected to close
during Transat's 2024 first quarter.
The proceeds of the sale will be used to immediately repay a
portion of the Corporation's secured facilities.
The divestiture of Transat in this Hotel is aligned with the
Corporation's strategic plan to refocus on its airline
activities. It should be recalled that the Corporation had
purchased a stake in the Hotel in April
2017 as part of the development of its hotel division, for
which the activities were discontinued in 2021.
About Transat
Founded in Montreal 36 years
ago, Transat has achieved worldwide recognition as a provider of
leisure travel particularly as an airline under the Air Transat
brand. Voted World's Best Leisure Airline by passengers at the 2023
Skytrax World Airline Awards, it flies to international
destinations. By renewing its fleet with the most energy-efficient
aircraft in their category, it is committed to a healthier
environment, knowing that this is essential to its operations and
the destinations it serves. Transat has been Travelife-certified
since 2018. (TSX: TRZ) www.transat.com.
SOURCE Transat A.T. Inc.