WestJet announced on Wednesday that the airline’s acquisition by the Onex Group has been completed after final approval from the Canadian Transportation Agency. The deal is valued at around $5B, including the assumption of debt.
Today, WestJet (TSX: WJA) announced the completion of a $5B deal by the Onex Group (TSX: ONEX) to acquire the Canadian carrier. After receiving final regulatory approval from the Canadian Transportation Agency, the deal was completed with WestJet shareholders receiving $31.00 per share in cash. Registered shareholders will receive the offer by mail to tender their shares. Shares held in brokerage accounts will be converted to cash without the need to submit a letter of transmittal. WestJet shares will be delisted from the Toronto Stock Exchange in the coming days and therefore shareholders will not receive the previously declared quarterly dividend that was payable December 31, 2019.
Onex was founded in 1984 and is headquartered in Toronto, Canada, with satellite offices in New York, New Jersey and London. The company invests and manages capital on behalf of shareholders, institutional investors and high net worth clients. The platforms in the Onex portfolio include Onex Partners and ONCAP private equity funds, Onex Credit and Gluskin Sheff. The Onex Corporation has approximately $38B under management, including $7B of its own shareholder capital and its experienced management teams are the largest investors across the organization’s platforms. The company's portfolio businesses employ around 157,000 people worldwide and generate approximately $28B in annual revenue.
The WestJet Group operates Canada’s second largest airline (WestJet), including regional subsidiaries WestJet Encore and WestJet Link as well as LCC Swoop. The airline offers service to over 100 destinations in North America, Central America, the Caribbean and Europe. Through airline partnerships, WestJet offers service to more than 175 destinations in over 20 countries.
Source: WestJet