3 LETTERS

THE FIRST LETTER​ (JUNE 24, 2019)

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I want to share some information with the current shareholders of Transat. They are Quebecers and Canadians, managers and employees, our own pension funds and perhaps family and friends as well. I believe that Transat is worth more than what the other two contenders have offered to shareholders.

Bank financial analysts and the market have underestimated our airline companies significantly. The times have changed. Over the last decades the price of the plane ticket has fallen dramatically relative to people's purchasing power. Communications have exploded. Immigration is more present. Most of us want to travel more, more often, farther and longer. I have the capacity and a very good team to value Transat, but especially to take good care of it and to make it grow in time with those who will accompany us. We combine more than 70 years of experience in the airline industry. And when you commit for 10 to 20 years, the initial price is not the most important element. Employees and customers count for more!

Considering two visible parties already interested but who still have not made a formal offer without significant conditions including Air Canada (in content after all and having been entitled to privileged information for a very long time on an exclusive basis and other advantages in exchange of a conservative floor price of $ 13 very early in the process, slowing down other groups) and Groupe Mach (with or without investors like the Saputo or others) as well as other potentially interested groups such as Mr. Péladeau or the firms Claridge (Bronfman) and Sagard (Desmarais), I have informed my group that according to my presentiment this potentially historical transaction shall not be done under 18 dollars a share.
 

FNC Capital is working to produce a friendly offer to the board of Transat and its shareholders, and now considers a price range between $ 17 and $ 20 a share, and possibly more eventually.

We are confident and I am equipped to deal with the music at the operational level. I will not be able to answer all questions of all journalists nor accept all invitations unfortunately. I will not reveal the members of my team, not to be weaken against other groups. Let's not look for a finality already, it will come gradually until  September. This will most likely be a hard and long contest, far more fought than what people currently expect.

I am announcing that I will be there until the end.

Dominik Pigeon
FNC Capital

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More to come