WestJet purchased by Onex Corp
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WestJet purchased by Onex Corp
https://www.newswire.ca/news-release...847792523.html
CALGARY, May 13, 2019 /CNW/ - WestJet Airlines Ltd. ("WestJet")(TSX: WJA) announced today it has entered into a definitive agreement that provides for its acquisition in an all-cash transaction. Under the terms of the agreement, Onex Corporation ("Onex")(TSX: ONEX) and its affiliated funds will acquire all outstanding shares of WestJet for $31.00 per share, after which WestJet will operate as a privately-held company. The purchase price represents a 67% premium to Friday's closing share price and a 63% premium to WestJet's 20-day volume-weighted average trading price. The transaction value is approximately $5 billion including assumed debt.
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The Globe & Mail summarises the 35-year-old private equity firm Onex's business this way:
<<
On its surface, Onex offers a straightforward model. It scours the world in search of undervalued or tarnished companies that it can polish up through cost-cutting, restructuring and expansion. It then holds onto, sells or lists the companies through an initial public offering. That stable of companies is also huge, making Onex a perennial Top 20 finisher in [the G&M's] annual ranking of Canada’s Top 1000 companies by revenue.
>>
Wikipedia has a rather sparse entry:
<https://en.wikipedia.org/wiki/Onex_Corporation>
<<
On its surface, Onex offers a straightforward model. It scours the world in search of undervalued or tarnished companies that it can polish up through cost-cutting, restructuring and expansion. It then holds onto, sells or lists the companies through an initial public offering. That stable of companies is also huge, making Onex a perennial Top 20 finisher in [the G&M's] annual ranking of Canada’s Top 1000 companies by revenue.
>>
Wikipedia has a rather sparse entry:
<https://en.wikipedia.org/wiki/Onex_Corporation>
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Jun 24, 2019, 3:52pm EDT Onex, which formerly owned Spirit AeroSystems Inc. in Wichita, cut its original offer for the Canadian airline over concerns including the grounding of the 737 MAX
Onex initially submitted a bid in March for the airline at $35.75 per share.
However it then sealed a cut-price deal at $31 per share after the grounding of Boeing 737 Max aircraft and the resulting uncertainty over its pathway to re-certification.
WestJet shareholders still need to approve the deal at a meeting next month.
Onex initially submitted a bid in March for the airline at $35.75 per share.
However it then sealed a cut-price deal at $31 per share after the grounding of Boeing 737 Max aircraft and the resulting uncertainty over its pathway to re-certification.
WestJet shareholders still need to approve the deal at a meeting next month.
