MONTREAL — Institutional Shareholder Services Inc. (ISS) has put forth a recommendation that Transat shareholders vote for an acquisition deal between Transat and Air Canada.

First published on Aug. 11, this favourable recommendation was based on the original price of $13 per share that was reflected in the pre-amended binding arrangement agreement by which Air Canada was to acquire all outstanding shares of Transat.

ISS, a third-party proxy advisory firm, reiterated its recommendation that Transat shareholders vote for the detail in a subsequent alert after Air Canada increased the price per share to $18 on Aug. 11.

“The acquisition by Air Canada is supported given the significant premium and certainty of the all-cash consideration; the execution risks associated with other alternatives, including the status quo, and the sale process conducted by the board, which appears to have provided alternative bidders ample opportunity to submit superior offers,” said ISS.

Under the terms of the newly amended agreement, which has been unanimously approved by Transat’s board of directors, Air Canada will acquire all outstanding shares of Transat for $18 per share for a total all-cash transaction value of approximately $720 million.

Transat shareholders will be asked to consider and vote on a special resolution approving the deal at a special meeting on Aug. 23 in Montreal.