Chorus Aviation shares climb 34% thanks to takeover

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Shares of Chorus Aviation Inc. surged on the Toronto Stock Exchange Friday afternoon after the aviation holding company revealed it had sparked interest in takeovers.In a brief statement, Halifax-based Chorus said it had received a “preliminary and non-binding acquisition proposal from a third party subject to a number of important conditions.” However, he warned that there was no guarantee that the unidentified suitor’s advance would result in a transaction.

The company’s shares closed near their intraday high, gaining 34.2% to $ 3.18.

Chorus, which provides regional air services under the Jazz Aviation and Voyageur Aviation banners, has been hampered by the pandemic and its impact on air passenger traffic like many of its industry peers.

At the end of June, Air Canada – which has a major capacity purchase agreement with Chorus – scrapped 21 regional routes operated by Jazz.

Along with the company’s second quarter results released on August 12, chief executive Joe Randell said Chorus had cut about 65% of its workforce since the start of the pandemic. The company also reported a 45 percent year-over-year collapse in the second quarter.

He pleaded with the government to ease travel restrictions.

“Canadian and provincial governments need to look to other G20 countries that have implemented safe, thoughtful, practical and science-based approaches to strategically ease travel restrictions to allow businesses and economies to restart and succeed as part of this new normal, ā€¯Randell said at the time.



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