A Canadian real estate developer is attempting to derail Air Canada’s planned acquisition of Air Transat by making a more valuable offer for the leisure carrier’s parent company.

Montreal-based Group Mach said June 4 it proposes to purchase Transat AT for C$14 ($10.43) per share, a C$527.6 million valuation. On May 16, Air Canada made an offer of C$13 per share, or C$520 million, for Transat, and the two companies entered exclusive 30-day negotiations.

Group Mach said its offer is contingent on Transat ending the talks with Air Canada before entering into any binding acquisition agreement.

In response, Air Canada said June 4 it is in the process of finalizing a binding agreement with Transat.

Transat said it has “taken note” of Group Mach’s offer.

“Transat would like to reiterate that it has entered into an agreement with Air Canada, pursuant to which it has agreed to a 30-day binding period of exclusive negotiations, beginning upon the commencement of a formal due diligence review,” the Montreal-based company said in a statement. “During this exclusivity period it is contemplated that Air Canada will complete its due diligence review and the parties will finalize the negotiation of a definitive agreement regarding the acquisition of all of the shares of Transat.”

“There is no assurance that a definitive agreement will be reached in relation to any proposed transaction,” the company added.

One condition of Group Mach’s offer is that the Quebec government provide about C$120 million in financing for the proposed acquisition.

In its response, Air Canada said the airline “has all necessary funding to complete the transaction and therefore it is not subject to financing conditions and does not require government or taxpayer assistance.”

Group Mach said its offer would “strengthen Transat’s 2018-2022 strategic plan while preserving all operating units of Transat, including its airline, tour operator, travel agency and hotel divisions.”

Jack Wittman, jack.c.wittman@informa.com