Transat checking out of Ocean Hotels, expects $190M from partner H10 Hotels
Jean-Marc Eustache, president and CEO of Transat A.T. Inc., one of the largest integrated tourism companies in the world, opens the company's annual meeting, Wednesday, March 11, 2009 in Montreal. (Paul Chiasson / THE CANADIAN PRESS)
The Canadian Press
Published Wednesday, July 19, 2017 11:37AM EDT
MONTREAL -- Travel company Transat A.T. Inc. (TSX:TRZ) has signed a deal to sell its 35 per cent share of Ocean Hotels for about $190 million.
The buyer is Spanish company H10 Hotels, Transat's partner in the joint venture, which operates resorts in Mexico, Dominican Republic and Cuba.
Shares in Transat jumped more than 10 per cent after the agreement was announced.
Transat says the proceeds from the sale of its minority interest in Ocean Hotels as well as the sale of some of its operations in France and Greece last year will help support the development of its own hotel operation.
The deal is expected to close by Nov. 2.
Transat CEO Jean-Marc Eustache said being a minority owner was no longer "an interesting use" of the company's capital.
"Our hotel division will take shape in the near future, including with the hiring of a president to lead it," Eustache said in a statement.
"We are very excited at the idea of moving forward with this priority initiative for the company."