Canada 3000 Inc. and Royal Aviation Inc. have announced an agreement whereby Canada 3000 will offer to acquire 100 percent of the shares of Royal.
The combined company will be Canada’s second largest passenger and cargo airline, with annual revenues last year of over $1 billion. Under the terms of the agreement, Canada 3000 will offer one common share for every 2.5 common shares of Royal. The total value of the transaction is approximately $84 million.
“The combined airline brings together Canada 3000’s long haul, international services with Royal’s short-haul domestic capabilities,” says John M. S. Lecky, Chairman of Canada 3000.
“The combined company represents an excellent platform for dynamic growth in the business market,” says Michel Leblanc, chairman, president and CEO of Royal Aviation. Leblanc will join the Canada 3000 senior executive team as vice chairman and managing director, Canadian scheduled services.
The enhanced organization will have a fleet of 34 aircraft, with a further 10 aircraft on order. Canada 3000 will be mailing its offer to shareholders of Royal Aviation within the next 30 days, with the offer open for 21 days following the mailing.
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