Transat A.T. Inc., the Montreal-baser international tour operator, has announced plans to become a single share class company.
As of Monday the company’s Class A shares variable voting shares (which trade under the symbol (TRZ.A) and its voting shares (TRZ.B) will trade under a single ticker TRZ on the Toronto Stock Exchange. The new shares will be known as voting and variable voting shares.
Transat, whose business has two distinct seasons — Caribbean in the winter and Europe in the summer — said the change “is designed to improve the liquidity for the Class A variable voting shares which have historically had lower trading volumes.”
As of its last reporting date, Transat had 1.169 million Class A shares outstanding and 36.520 million Class B shares. During the past six months the average daily volume of the Class A’s was 6,710 — or less than one tenth of the average daily volume (76,204) of the Class Bs.
Transat said the trading of its shares under a single ticker “is limited solely to the administration of trading of the Transat shares on the TSX.” The change won’t affect its articles of incorporation, its by-laws or share capital structure.
Nor will the changes affect the voting and ownership restrictions attaching to each share class. Under the Canada Transportation Act, only non-Canadians were entitled to own the Class A shares. And those shares carried one vote provided the Class A shares didn’t exceed 25 per cent of the overall share count. If the 25 per cent limit was reached – and the latest numbers show that it’s not – then the per share vote attached to each Class A share would fall.