|Bid||30.61 x 0|
|Ask||30.62 x 0|
|Day's Range||30.60 - 30.64|
|52 Week Range||16.71 - 31.00|
|Beta (3Y Monthly)||-0.24|
|PE Ratio (TTM)||21.50|
|Earnings Date||Oct 29, 2019|
|Forward Dividend & Yield||0.56 (1.83%)|
|1y Target Est||27.46|
Air Canada has challenged Onex Corp's proposed acquisition of WestJet Airlines, on grounds that the deal may not meet the country's ownership rules, according to a letter sent by the carrier to the Canadian Transportation Agency. Toronto-based Onex's planned C$3.5 billion ($2.6 billion) buyout of Calgary-based WestJet has received approval from the carrier's shareholders and some regulators, but the agency is still reviewing whether the deal meets Canada's protective ownership laws. Under Canadian rules, foreigners cannot own more than 49% equity in a Canadian airline.
(Bloomberg) -- Air Canada is calling on the country’s transportation regulator to take a closer look at Onex Corp.’s takeover of WestJet Airlines Ltd., arguing that the C$3.5 billion ($2.6 billion) deal may run afoul of foreign-ownership rules.“I am writing to express the concern that, due to the structure of the transaction and the capital and corporate governance structure of Onex, the transaction may result in an undertaking that is not ‘Canadian’ within the meaning” of the Canada Transportation Act, Air Canada’s general counsel David Perez wrote in an Aug. 15 letter to the Canadian Transportation Agency. “Onex’s structure also appears to provide insufficient protections to ensure that WestJet continues to be Canadian in the future.”Onex, the Toronto-based buyout firm founded and led by Gerry Schwartz, agreed in May to buy Canada’s second-biggest carrier in a cash deal and take the company private. The acquisition was valued at C$31 a share, or C$5 billion including debt, Toronto-based Onex said at the time. The stock closed Friday at C$30.86 in Toronto.Air Canada’s letter said that WestJet’s purchaser will also have a number of co-investors that may include foreign sovereign wealth funds, foreign airlines and other non-Canadians, and that Onex lacks the necessary internal controls to ensure that Calgary-based WestJet remains Canadian.Foreign ownership rules under Canada’s transportation act require a company to be 51% owned and controlled by Canadians, with no more than 25% voting interest held by any single non-Canadian.“We urge the agency to carefully consider whether the transaction will result in an undertaking that is Canadian and to use its powers to investigate and uphold the Act as necessary,” Air Canada said.The appeal was reported earlier in the Globe and Mail.“Onex is pleased to have received approval from the minister of transport and the Competition Bureau for the WestJet transaction,” the company said in an e-mail. “Onex is engaged with the CTA on the regulatory approval process of our transaction.”WestJet spokeswoman Lauren Stewart said the arrangement is still subject to the receipt of the Canadian Transportation Agency’s review of the ownership structure.“Assuming the timely receipt of this approval, the transaction is expected to close in the fourth quarter of 2019,“ Stewart said in an e-mail. “As the deal remains under regulatory review, we will not be providing further comment.(Updates with company comments)To contact the reporter on this story: Doug Alexander in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: David Scanlan at email@example.com, ;Michael J. Moore at firstname.lastname@example.org, Brendan CaseFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Air Canada has challenged Onex Corp's proposed acquisition of WestJet Airlines , on grounds that the deal may not meet the country's ownership rules, according to a letter sent by the carrier to the Canadian Transportation Agency. Toronto-based Onex's planned C$3.5 billion ($2.6 billion) buyout of Calgary-based WestJet has received approval from the carrier's shareholders and some regulators, but the agency is still reviewing whether the deal meets Canada's protective ownership laws.
CALGARY , Aug. 13, 2019 /CNW/ - WestJet Airlines Ltd. (WJA.TO) ("WestJet") today announced that the Canadian Competition Bureau has granted unconditional approval for WestJet's proposed transaction with Onex Corporation ("Onex") (ONEX.TO) (the "Arrangement") by issuing a no-action letter. Ed Sims , WestJet's President and Chief Executive Officer, said, "Receiving unconditional approval from the Canadian Competition Bureau is another important step on our path to closing the transaction.
Investors are seeking additional protection in volatile credit markets by asking companies to increase guaranteed minimum returns on leveraged loans, as fears grow that falling US interest rates could drag Libor lower, hitting their returns. Floating-rate loans pay an interest margin plus Libor, but investors’ returns are falling as Libor rates tumble. Consulting firm Teneo, WestJet Airlines and urgent care provider CityMD added ‘Libor floors’ of 1% to boost guaranteed minimum returns on their leveraged loans, and protect investors against further drops in Libor as US interest rates fall.
Moody's Investors Service ("Moody's") assigned ratings to Kestrel Bidco Inc. (dba "WestJet Airlines") consisting of a Ba3 corporate family rating (CFR), Ba3-PD probability of default rating, and Ba2 ratings to the company's proposed new senior secured revolving credit facility and senior secured first lien term loan. When the acquisition closes, expected around September, 2019, Moody's will withdraw all WestJet ratings, including its' Ba1 CFR, Ba1-PD PDR, Ba2 senior unsecured rating and SGL-2 liquidity rating, currently under review for possible downgrade.
WestJet Airlines Ltd, which is being acquired by Onex Corp, reported a surprise quarterly profit and better-than-expected revenue on Friday while many airlines have warned of financial hits from the grounding of the Boeing Co 737 MAX jets. WestJet, which has grounded its 13 737 MAX jets, said it had been able to re-accommodate the majority of passengers on alternate flights. The 737 MAX, which had been Boeing’s fastest-selling aircraft thanks to its fuel-efficient engines and longer range, was grounded worldwide in March after an Ethiopian Airlines plane plunged to the ground soon after take-off, five months after a similar Lion Air fatal crash off the coast of Indonesia.
CALGARY , July 26, 2019 /CNW/ - WestJet Airlines Ltd. (WJA.TO) ("WestJet") today announced that the Court of Queen's Bench of Alberta has granted a final order approving the previously announced proposed transaction with Onex Corporation ("Onex") (ONEX.TO) (the "Arrangement"). The Arrangement was approved by more than 92.5 per cent of shareholders and optionholders who voted at a special meeting of WestJet held on July 23, 2019 . The Arrangement is still subject to other conditions to closing, including receipt of the remaining regulatory approvals.
The C$31 per share deal, announced in May, received a green light from Canada's transport minister last month. WestJet has reported a decline in net profit for each of the last three years, hurt by rising fuel costs, pressure on ticket prices and other problems. The WestJet purchase will be led by Onex Partners, Onex's private equity platform focused on larger investments.
CALGARY , July 23, 2019 /CNW/ - WestJet Airlines Ltd. (WJA.TO) ("WestJet") today announced that at a special meeting held today (the "Meeting"), its shareholders and optionholders overwhelmingly voted to approve its previously announced proposed transaction with Onex Corporation ("Onex") (ONEX.TO). Of the votes cast at the Meeting, more than 92.5 per cent of shareholders and optionholders who voted were in favour of the proposed transaction. WestJet and Onex entered into a definitive agreement on May 12, 2019 (the "Arrangement Agreement"), for the proposed acquisition of WestJet by Onex under a plan of arrangement, pursuant to which each outstanding share of WestJet will be exchanged for $31.00 in cash subject to the terms and conditions of the Arrangement Agreement (the "Arrangement"), following which WestJet will operate as a privately-held company.
CALGARY , July 16, 2019 /CNW/ - WestJet Airlines Ltd. (WJA.TO) ("WestJet" or the "Corporation") would like to remind holders ( "Shareholders") of common voting shares and variable voting shares (collectively, the "Shares") and holders ("Optionholders", and together with the Shareholders, "Securityholders") of stock options ("Options") of the Corporation that your vote is very important at the upcoming special meeting (the "Meeting") of Securityholders to be held on July 23, 2019 at 10:00 a.m. (Mountain time) at the WestJet Campus, Fred Ring building, 22 Aerial Place N.E., Calgary, Alberta . At the Meeting, Securityholders will be asked to consider and, if deemed advisable, to pass a special resolution (the "Arrangement Resolution") approving an arrangement (the "Arrangement") under Section 193 of the Business Corporations Act ( Alberta ) involving the Corporation, Kestrel Bidco Inc. (the "Purchaser"), an affiliate of Onex Corporation ("Onex"), and the Securityholders, pursuant to which, among other things, the Purchaser will, subject to the terms and conditions set out in the arrangement agreement between WestJet and the Purchaser dated May 12, 2019 , acquire all of the issued and outstanding Shares at a price of $31.00 per Share in cash (the "Consideration").