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T5J 5A3 © 2002-2020 Rogers Media. WestJet shareholders to receive $31.00 per share in cash; Acquisition recognizes and continues WestJet's industry-leading commitment to guest experience and employee culture All amounts in Canadian dollars unless otherwise stated . "Private equity firms buy companies for one of three reasons: cut costs, grow the business, or restructure the industry. Onex Corp. has signed a friendly deal to buy WestJet Airlines Ltd. in an all-cash transaction it valued at $5 billion, including assumed debt.. Enter your email below and we'll send you another email. "WestJet is one of Canada's strongest brands and we have tremendous respect for the business that Clive Beddoe and all WestJetters have built over the years," said Tawfiq Popatia, a managing director at Onex. Onex, a private equity firm based in Toronto, approached the airline in March. Onex offered C$31 a … Shareholders of WestJet Airlines on Tuesday voted in favour of its deal to be acquired by billionaire Gerry Schwartz’s private equity firm Onex Corp for $3.5 billion. It'll be the first thing Onex cuts -- or, to be more specific, sells off (the new owner will, of course, kill it). The all-cash deal between the two companies will see Onex Corporation pay $31 per share. Whale bets resurface as Facebook, Amazon see big options trades. Twenty years ago it teamed up with American Airlines parent company AMR Corp. in a hostile $1.8-billion bid plus the assumption of debt to acquire and merge Canadian Airlines and Air Canada. Onex was founded in 1984. {* createAccountButton *}, Two workers killed in collision at Suncor oilsands mine near Fort McMurray, Addressing mental health issues linked to pandemic looming issue in 2021, Bains says, Boeing Max returns to US skies with first passenger flight. {* forgotPassword_sendButton *}, {* #userInformationForm *} Last May, Onex signed a friendly deal to buy WestJet, paying $31 per share and will keep the airline as a privately held company. The deal is expected to close in the latter part of 2019 or early 2020 and is subject to shareholder, court and regulatory approvals. 5915 Gateway Blvd. "This was an absolute shock to me," Ryder said. But he was extremely close with his father, a businessman and auto-parts dealer. "These are very strategic, astute investors, in Onex. {* traditionalSignIn_signInButton *}, {* backButton *} Which is it? Onex will acquire outstanding WestJet shares for $31, a 67 per cent premium when compared to Friday’s closing share price of $18.52. There was no indication WestJet was up for sale, or that Onex was looking, said analyst Marvin Ryder, who teaches marketing at McMaster University. We reserve the right to close comments at any time. The deal that came as a surprise to some, including the head of the pilots union. "I am particularly pleased that WestJet will remain headquartered in Calgary and will continue to build on the success that our 14,000 WestJetters have created," WestJet founder and chair Clive Beddoe said in a news release. Twitter.com/AmandaMsteph WestJet started in Calgary in 1996 and has expanded from a low-cost domestic airline to an international carrier with flights to the U.S., Europe and the Caribbean. Following an approach by Onex in March 2019, the WestJet board ofdirectors formed a special committee of independent directors to provide theBoard with its advice and recommendations with respect to the proposal fromOnex and the transaction, and to supervise the negotiation of the terms andconditions of the transaction. The two companies said the deal, worth about $5 billion including debt, will be subject to a shareholder vote, likely in July, and close in the second half of 2019 or early 2020. Your existing password has not been changed. I spoke today with the president of WestJet and the senior representative of Onex who was responsible for this transaction," he said. Last Updated Dec 11, 2019 at 11:41 am MST. ... Trump kept regular schedule after learning close aide Hope Hicks had COVID. WestJet says it has agreed to be acquired by Onex Corp. and will become a private company in a deal valued at $5 billion. Will the WestJet deal, which is expected to close later this year or in early 2020, add to Onex’s allure? "But we'll be watching very carefully and making sure that those promises are kept.". We've sent an email with instructions to create a new password. CBC's Journalistic Standards and Practices. Under the agreement announced Monday, Onex will pay $31 per share, or $3.5 billion, for WestJet. “I am particularly pleased that WestJet will remain headquartered in Calgary and will continue to build on the success that our 14,000 WestJetters have created,” Beddoe said in a statement. The deal is expected to close in the latter part of 2019 or early 2020. "We don't anticipate that they're going to change the strategy that our company's already embarked on.". WESTJET TO BE ACQUIRED BY ONEX . Under the agreement announced on Monday, Onex will pay $31 per share for WestJet, . ... destination with no blackout periods, and have access to Member Exclusive fares offering deals to WestJet Under the terms of the cash deal, Onex will acquire all outstanding WestJet shares for $31 per share, which represents a 67 per cent premium to Friday’s closing share price. That was followed by a steep year-over-year drop in the third quarter, but the airline nonetheless bounced back into the black. "They made it very clear to me that they have made a commitment to retain all of the jobs at WestJet … most of which are located in Alberta.". The closing comes following the final regulatory approval by the Canadian Transportation Agency. Canadian private equity firm Onex bought Calgary-based WestJet Airlines, paying a 67% premium to Friday’s closing share price.Under the agreement, Onex will pay $31.00 per share for WestJet. They've concluded it's a strong company in a much better industry than it once was," said Ian Lee, who teaches strategic management at Carleton University. {* traditionalSignIn_password *}, {* #tradAuthenticateMergeForm *} Onex: WestJet: Emilie Blouin Director, Investor Relations +1.416.362.7711: Investor Relations +1.877.493.7853 investor_relations@westjet.com Martin Cej In our view, a private equity owner of an airline is likely to remain rational with respect to its approach to yields and profitability vs. market share," he said in a note to clients. In May-2019 Onex and WestJet announced their groundbreaking deal, which was the largest private equity agreement in the history of the airline industry. The airline will become a private company in a deal valued at $5 billion including assumed debt. . News of the deal comes after the airline struggled in 2018. The closing comes following the final regulatory approval by the Canadian Transportation Agency. CALGARY (660 NEWS) – The sale of WestJet is now complete. Calgary Mayor Naheed Nenshi took a slightly more skeptical position. Comments are welcome while open. The company says it manages $31 billion in assets. Please check your email and click on the link to activate your account. Revenues and efficiency were "nowhere near" the airline's potential, chief executive Ed Sims said during a WestJet investor conference in December 2018. WestJet shareholders to receive $ 31.00. Last May, Onex signed a friendly deal to buy WestJet, paying $31 per […] A pilot taxis a Westjet Boeing 737-700 plane to a gate after arriving at Vancouver International Airport in Richmond, B.C., on Monday, Feb. 3, 2014. Onex Corp. agreed to pay cash for Canada’s second-biggest carrier, and plans to take the company private in one of the buyout firm’s biggest deals. At the time the deal was unveiled WestJet CEO Ed Sims said that the company now had an ability to focus on its long term strategy to deliver against the lifetime of its assets, which include aircraft with a life span of 20-25 years. WestJet and Onex say the payment won't be made because the deal has closed before Dec. 18. The two companies said the deal, worth about $5 billion including debt, will likely close in the second half of 2019 or early 2020. "WestJet was generally well-funded and was already embarking on a large and highly competitive expansion plan. "They briefed me. The deal is also subject to other regulatory approvals and approval of WestJet shareholders at a meeting July 23. Click on the link to activate your account watching very carefully and making sure that those promises are.... The two companies will see Onex Corporation pay $ 31 per share, or restructure the industry said the deal! Equity firms buy companies for one of three reasons: cut costs grow! 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