Twitter.com/AmandaMsteph 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. Onex Corporation takes WestJet private for $5 billion In a stand-out private equity deal and another massive acquisition of an airline, Onex Corporation took ownership of WestJet Airlines Ltd. Onex – the investment manager with $38 billion in assets under management … The all-cash deal between the two companies will see Onex Corporation pay $31 per share. In the past six years, WestJet has created both regional and budget airlines — WestJet Encore and Swoop — and set its sights on long-haul routes with an order for 10 Boeing 787 jetliners set for delivery before 2022, receiving the first one earlier this year. ... the transaction is expected to close in the latter part of 2019 or early 2020. Onex: WestJet: Emilie Blouin Director, Investor Relations +1.416.362.7711: Investor Relations +1.877.493.7853 investor_relations@westjet.com Martin Cej . We reserve the right to close comments at any time. But he was extremely close with his father, a businessman and auto-parts dealer. It'll be the first thing Onex cuts -- or, to be more specific, sells off (the new owner will, of course, kill it). Soaring fuel costs, labour unrest, and steep competition at home and abroad caused the airline to incur its first loss in 13 years during the second quarter of last year. Shares in the airline closed at $18.52 on Friday, but shot up to $30.03 on Monday morning as news of the Onex offer broke. THE CANADIAN PRESS/Darryl Dyck, {* backButton *} Onex offered C$31 a share, which amounts to roughly a 67% premium to the airline’s closing price on Friday, May 10, which made the deal be worth C$3.5 billion ($2.6 billion). The deal is expected to close in the latter part of 2019 or early 2020. 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. News of the deal comes after the airline struggled in 2018. WestJet's board of directors has unanimously recommended shareholders vote in favour of the deal at meeting expected to be held in July. The company says it manages $31 billion in assets. WestJet and Onex entered into a friendly deal last month to pay $31 per share cash for the airline, ... Garneau's approval is one of the conditions for the deal to close. It is a priority for CBC to create a website that is accessible to all Canadians including people with visual, hearing, motor and cognitive challenges. There was no indication WestJet was up for sale, or that Onex was looking, said analyst Marvin Ryder, who teaches marketing at McMaster University. Shares in the airline closed at $18.52 on Friday. 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. Meanwhile, Encore pilots have voted in favour of a five-year agreement that runs until Jan. 1, 2024, and WestJet pilots agreed to a settlement process last May. According to reports from the Globe and Mail, this deal will close later this year or in 2020. Which is it? Closed Captioning and Described Video is available for many CBC shows offered on CBC Gem. ... Trump kept regular schedule after learning close aide Hope Hicks had COVID. This isn't Onex's first attempt to acquire an airline. 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. The airline will become a private company in a deal valued at $5 billion including assumed debt. Will the WestJet deal, which is expected to close later this year or in early 2020, add to Onex’s allure? Shares in WestJet soared more than 60 per cent when markets opened Monday after the deal was announced. "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. WestJet says it has agreed to be acquired by Onex Corp. and will become a private company in a deal valued at $5 billion. Onex was founded in 1984. Under the agreement announced Monday, Onex will pay $31 per share for WestJet, which will continue to operate as a privately held company. Please note that CBC does not endorse the opinions expressed in comments. "Onex typically likes to buy companies that they think are undervalued and then see if they can find a way to release that value.". And we've been told that it will," he said. In May-2019 Onex and WestJet announced their groundbreaking deal, which was the largest private equity agreement in the history of the airline industry. 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 deal that came as a surprise to some, including the head of the pilots union. WestJet shareholders are expected to vote on the $5 billion acquisition at a special meeting in July. Under the agreement announced Monday, Onex will pay $31 per share, or $3.5 billion, for WestJet. The nearly 4,000 flight attendants at WestJet and WestJet Encore have unionized over the past year. CALGARY (660 NEWS) – The sale of WestJet is now complete. Sorry we could not verify that email address. "These are very strategic, astute investors, in Onex. {* traditionalSignIn_password *}, {* #tradAuthenticateMergeForm *} After an extensive review of the proposedtransaction, the special committee provided its unanimous recommendation of thetransaction to the WestJet board of director… {* traditionalSignIn_emailAddress *} “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 plan was dropped after being ruled illegal by a Quebec court. WESTJET TO BE ACQUIRED BY ONEX . CBC's Journalistic Standards and Practices. 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 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. Onex offered C$31 a … Pseudonyms will no longer be permitted. WestJet and Onex say the payment won't be made because the deal has closed before Dec. 18. 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. Onex also failed in its effort in 2007 as part of a consortium to buy Australia's Qantas Airways Ltd. WestJet's current growth spurt could generate profits that offset the rising cost of labour. The 787 Dreamliner is one of Westjet’s newer acquisitions and an attempt to become more of a full-service airline Photo: Westjet Details of the deal. If the deal is approved by regulators, Onex Corporation will acquire each share at a price of CA$31, making for a total value of the deal, which includes the airline’s debt, of CA$5 billion. Under the terms of the deal announced in May, Onex’s acquisition of WestJet is set to close later in 2019 or early next year. 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. But he believes it's good news for the company. Enter your email below and we'll send you another email. "WestJet was generally well-funded and was already embarking on a large and highly competitive expansion plan. The deal is also subject to other regulatory approvals and approval of WestJet shareholders at a meeting July 23. Pound's wild day is sign of Brexit-induced volatility to come. Edmonton, Alberta. Calgary Mayor Naheed Nenshi took a slightly more skeptical position. Last May, Onex signed a friendly deal to buy WestJet, paying $31 per share and will keep the airline as a privately held company. I spoke today with the president of WestJet and the senior representative of Onex who was responsible for this transaction," he said. Completion of the transaction is subject to a number of conditions, including court, regulatory and shareholder approvals. Garneau’s approval is one of the conditions for the deal to close. The two companies announced Monday morning that a definitive agreement had been reached for the all-cash transaction, which is expected to close later this year or early 2020. Your existing password has not been changed. Onex Corp. has signed a friendly deal to buy WestJet Airlines Ltd. in an all-cash transaction of $3.5 billion. {* traditionalSignIn_signInButton *}, {* backButton *} That was followed by a steep year-over-year drop in the third quarter, but the airline nonetheless bounced back into the black. Revenues and efficiency were "nowhere near" the airline's potential, chief executive Ed Sims said during a WestJet investor conference in December 2018. Onex Corp. announced Wednesday it has officially taken over the Calgary-based company for $5 billion including assumed debt. Please confirm the information below before signing up. "This was an absolute shock to me," Ryder said. Analyst Doug Taylor of financial services firm Canaccord Genuity said the Onex deal likely will not "dramatically alter" the competitive landscape. Under the agreement announced on Monday, Onex will pay $31 per share for WestJet, . 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. The deal is expected to close in the latter part of 2019 or early 2020. WestJet shareholders to receive $ 31.00. "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.". Enter your email address to get a new one. "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. The deal is expected to close in the latter part of 2019 or early 2020. astephenson@postmedia.com. Onex is buying WestJet in $5 billion deal — and taking it private Back to video WestJet founder and chairman Clive Beddoe said Onex is an ideal partner for the airline. We have sent a confirmation email to {* emailAddressData *}. . 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. All rights reserved. Speaking to reporters on Monday, Alberta Premier Jason Kenney said he's confident the deal will be good for the company and for employees. Toronto-based Onex corporation will spend $5 billion to acquire WestJet.The deal, announced this morning, will see few changes initially at the airline, other than the new owners.It also comes at a ~67%premium to the share trading price from Friday’s close making it a great deal … 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 . CALGARY – Onex Corp. has signed a friendly deal to buy WestJet Airlines Ltd. in a transaction it valued at $5 billion, including assumed debt. CALGARY (660 NEWS) – The sale of WestJet is now complete. Some analysts suggest this is a vote of confidence in the company's direction. WestJet shares were down 0.3% at C$30.77 on Tuesday afternoon. Ed Sims, CEO of WestJet, joins BNN Bloomberg to discuss Onex's $5-billion dollar takeover deal for the airline and what it will mean for the company's future. And they said they are entirely focused on growth, and that's good news for WestJet, and it's good news for Calgary," he said. Last Updated Dec 11, 2019 at 11:41 am MST. 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. Audience Relations, CBC P.O. The deal is expected to close in the latter part of 2019 or early 2020 and is subject to shareholder, court and regulatory approvals. Last May, Onex signed a friendly deal to buy WestJet, paying $31 per […] {* 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. The closing comes following the final regulatory approval by the Canadian Transportation Agency. Goldman Asset sees a Brexit deal but the good news ends there. Box 500 Station A Toronto, ON Canada, M5W 1E6. Please check your email and click on the link to activate your account. A special meeting of shareholders is expected to take place in July to vote on the transaction. 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.. Comments are welcome while open. "Things that are important to us are, you know, to make sure that agreement that we have right now remains in force. The two companies said the deal, worth about $5 billion including debt, will likely close in the second half of 2019 or early 2020. With files from Tiphanie Roquette, The Canadian Press. WestJet says it has agreed to be acquired by Onex Corp. and will become a private company in a transaction valued at $5 billion including debt. "But we'll be watching very carefully and making sure that those promises are kept.". More than 92.5 per cent of the votes cast at the special meeting were in favour of the proposed deal, the company said in a statement. "They briefed me. The two companies said the deal, worth about $5 billion including debt, will likely close in the second half of 2019 or early 2020. "He [Gerald Schwartz, chief executive of Onex] has a track record, for 30-odd years, of astute investments. ... destination with no blackout periods, and have access to Member Exclusive fares offering deals to WestJet "We don't anticipate that they're going to change the strategy that our company's already embarked on.". "Onex's aerospace experience, history of positive employee relations and long-term orientation makes it an ideal partner for WestJetters, and I am excited about our future.". {* mergePassword *}, {* backButton *} We didn't recognize that password reset code. WestJet Airlines Ltd. wants to sell itself to Onex Corp. to buy itself the ultimate luxury: time. Onex will acquire outstanding WestJet shares for $31, a 67 per cent premium when compared to Friday’s closing share price of $18.52. We've sent an email with instructions to create a new password. {* forgotPassword_sendButton *}, {* #userInformationForm *} T5J 5A3 © 2002-2020 Rogers Media. 5915 Gateway Blvd. Union chair Captain Dave Colquhoun said he first heard about the sale in a meeting Monday morning. Comments on this story are moderated according to our Submission Guidelines. "Private equity firms buy companies for one of three reasons: cut costs, grow the business, or restructure the industry. Whale bets resurface as Facebook, Amazon see big options trades. Canadian airline WestJet has today announced that it has reached an agreement with Canadian company and equity firm Onex Corporation to sell the airline in a deal worth CA$5 billion. Onex, a private equity firm based in Toronto, approached the airline in March. By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. The closing comes following the final regulatory approval by the Canadian Transportation Agency. Onex Corp. announced Wednesday it has officially taken over the Calgary-based company for $5 billion including assumed debt. To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). {* traditionalSignIn_emailAddress *} This guy is not someone who has a string of failures behind his name.". Airlines Ltd. in an all-cash transaction of $ 3.5 billion, for WestJet deal was announced failures behind name. Confidence in the airline closed at $ 5 billion acquisition at a meeting July 23 he was close! 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