Travel

WestJet being bought out by Toronto's Onex Corp

  • Last Updated:
  • Sep 4th, 2019 10:45 am
[OP]
Deal Expert
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May 10, 2005
33807 posts
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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
The Government cannot give to anybody anything that the Government does not first take from somebody else.
69 replies
Deal Addict
Dec 20, 2018
1843 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
4922 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
Penalty Box
Apr 5, 2013
3976 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
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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.
The Government cannot give to anybody anything that the Government does not first take from somebody else.
Jr. Member
Oct 6, 2008
135 posts
54 upvotes
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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HK
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
908 posts
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Montreal
Hopefully they won't pull off an RBI/Tim Horton's fiasco.
Deal Addict
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
Penalty Box
Feb 22, 2016
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Any chance Onex was one of the bidders for TS but decided to buy WS instead?
Friendly reminder: South Street is the second coming of Licks, and Works Burger is a bad ripoff of Red Robin put out by those purveyors of garbage, MTY Shit Restaurants Group.
Also, the golden arches are McDonald's not MacDonald's. Get it right.
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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.
Deal Addict
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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