Travel

WestJet being bought out by Toronto's Onex Corp

  • Last Updated:
  • May 15th, 2019 7:53 pm
[OP]
Deal Expert
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May 10, 2005
32588 posts
6875 upvotes
Ottawa

WestJet Sold

Never saw this coming.

WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).

https://ca.finance.yahoo.com/news/westj ... ector.html
https://ca.finance.yahoo.com/news/onex- ... ll-brknews

Who is Onex?
https://en.wikipedia.org/wiki/Onex_Corporation
Life is short......Make sure you spend as much time as possible on the internet arguing with strangers about politics :). Anonymous
67 replies
Sr. Member
Dec 20, 2018
724 posts
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Didn't see this coming, but I guess with the depressed WJA stock price , this was a good value for onex. Wonder if it also had to do with WestJet not being able to get enough capital with their depressed stock price .


Toronto Star: Onex signs agreement to buy WestJet in deal valued at $5B, including debt.

www.thestar.com/amp/business/2019/05/13 ... -debt.html
Deal Addict
Jul 4, 2004
4522 posts
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Ottawa
Wow! Never saw this coming either. Also seems like a huge premium to pay; shares currently trading around $18.50CND and they are paying $31CND
Deal Addict
Apr 5, 2013
3669 posts
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markham
Pete_Coach wrote:
May 13th, 2019 8:37 am
Never saw this coming.

WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).

https://ca.finance.yahoo.com/news/westj ... ector.html
https://ca.finance.yahoo.com/news/onex- ... ll-brknews

Who is Onex?
https://en.wikipedia.org/wiki/Onex_Corporation
not surprising...Gerald tried to buy AC about 20 years ago when that stock was undervalued (?)...if I remembered it properly, it made them come up with a poison pill to protect against this like many other company's....it also drove the share price up to about $20-$25
[OP]
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May 10, 2005
32588 posts
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Ottawa
cardguy wrote:
May 13th, 2019 9:56 am
not surprising...Gerald tried to buy AC about 20 years ago when that stock was undervalued (?)...if I remembered it properly, it made them come up with a poison pill to protect against this like many other company's....it also drove the share price up to about $20-$25
Paying a $13.50 premium over present share price to buy the shares is a pretty big commitment.
Onex does lots with the companies it buys, including splitting them up.
Life is short......Make sure you spend as much time as possible on the internet arguing with strangers about politics :). Anonymous
Jr. Member
Oct 6, 2008
111 posts
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Winnipeg
Too early to tell how this impacts loyalty programs? I have some WJ $ I'd have to burn off if they're thinking of scrapping it.
Deal Addict
Oct 18, 2014
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Singapore
As a shareholder, I'm very pleased. Now to focus on AC.
Newbie
Aug 17, 2010
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GTA
Anyone know how this will work for shareholders? This may be a dumb question, but I own some WJA stock through Questrade and once the deal is complete, should I expect the shares to be automatically be sold at $31/share and converted to cash? Or will it be converted to ONEX.TO shares?
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Feb 19, 2010
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webconfig wrote:
May 13th, 2019 12:19 pm
Anyone know how this will work for shareholders? This may be a dumb question, but I own some WJA stock through Questrade and once the deal is complete, should I expect the shares to be automatically be sold at $31/share and converted to cash? Or will it be converted to ONEX.TO shares?
It's a straight cash deal so the former.
Sr. Member
Dec 4, 2011
790 posts
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Montreal
Hopefully they won't pull off an RBI/Tim Horton's fiasco.
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Jul 7, 2017
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SW corner of the cou…
Me wonders if Gerry wants to become a millionaire in the airline biz....
Almost too cheap to shop through RFD
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Feb 22, 2016
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Any chance Onex was one of the bidders for TS but decided to buy WS instead?
Member
Jul 30, 2015
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EastGTARedFlagger wrote:
May 13th, 2019 7:24 pm
Any chance Onex was one of the bidders for TS but decided to buy WS instead?
No. They confirmed they were not in discussions with TS.

I think this may be good for WS long term. We'll see how it goes.
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Aug 29, 2011
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Mississauga
Onex will want a decent return and pretty quickly. They're like KKR but not a aggressive. Expect to see some pain at WS soon.
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Dec 20, 2018
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Latitude57 wrote:
May 13th, 2019 7:48 pm
No. They confirmed they were not in discussions with TS.

I think this may be good for WS long term. We'll see how it goes.
When was the last time it turned out well for customers or company who was subject of a takeover by a private equity firm? Their business model is squeeze money and any remaining value out of asset and then sell off for parts.

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