MONTREAL — A “significant majority” of Transat shareholders have voted in favour of the $720 million deal with Air Canada, giving the proposed acquisition another green light on the road to completion.

The deal is still subject to closing conditions including the approval of the Superior Court of Québec, and applicable regulatory approvals such as the approvals under the Competition Act (Canada), the Canada Transportation Act and the European Union Council Regulation (EC) No. 139/2004.

But this is a major win for both Transat and Air Canada, who both want the deal to go forward. Air Canada upped its offer to $18 per share, for a total of $720 million, to appease several major Transat shareholders who argued that the original $13 offer was too low.

Shareholders carrying an aggregate of 26,530,771 votes, representing some 70.28% of votes entitled to be cast at the meeting, were represented in person or by proxy at the meeting this morning in Montreal.

The deal was approved by 94.77% of the votes cast by shareholders, voting together as a single class, as well as 94.69% of the votes cast by shareholders, voting together as a single class, excluding the votes of President and CEO Jean-Marc Eustache. Eustache’s votes are required to be excluded in determining minority approval pursuant to Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions.

“We are delighted by the shareholder support for the arrangement that will create a Montreal-based travel leader, able to compete on a global scale,” said Eustache. “This transformative transaction will create long-term benefits for our employees, travellers and communities, all the while providing significant value for our shareholders.”