Transat AT shares rose 23 percent this morning after Air Canada said it still plans to buy its smaller rival but at a substantially reduced price due to the collapse of the aviation industry amid COVID-19.

Transat stock climbed 87 cents to $4.70 after markets opened, buoyed by Air Canada’s reassurance.

The two Montreal-based companies have agreed on revised terms that would see Air Canada pay $5 per share for the parent company of Air Transat, compared to the $18 per share originally pledged in its takeover bid.

That brings the total sale price to $190 million, down from $720 million previously.

The deal is endorsed by Transat’s board of directors but must be approved by two-thirds of Transat’s shareholders, who will vote in a special meeting in early December.

The company has not indicated whether the deal has the support of its major stakeholders, which include Letko Brosseau, the Fonds de solidarite FTQ and Quebec pension fund manger the Caisse de depot et placement.

Regulatory approvals in Canada and the European Union are also still pending, with the EU expected to rule in early 2021.

The agreement is expected to close in late January or early February, with a deadline set for Feb. 15.