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.
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