Canada’s second-largest aircraft carrier, WestJet Airlines Ltd., headquartered in Calgary, had agreed to an all-cash buyout offer of $2.6 billion from private equity group, Onex Corp., on Monday, the 13th of May 2019, rocketing the low-cost aircraft carrier’s shares 63 percent up during the Toronto trading hours.
More crucially, according to Refinitiv data, the Onex takeover deal would be the largest acquisition of an airlines b a private equity company. In point of fact, the Canadian carrier, WestJet had faced a rough start of 2019, as worldwide groundings of Boeing’s 737 Max 8 had forced the airline to cancel its full-year outlook on March.
Besides, the airlines had also been struggling to grapple with an increased expense amid heightening competition, while it had introduced its budget carrier Swoop. Nevertheless, Onex, the private equity firm, had first approached to the managing board of WestJet on last March and executed a strategic review over the ins-and-outs of the deal.
However, it had not been Onex’s first attempt to purchase an aerospace company, as it had bought Spirit Aerosystems from Boeing Co. back in 2005 and made around $3.2 billion before exiting its investment on Aerosystem in 2014.
While WestJet Airlines Ltd. had wrapped up the day 60 percent higher at C$29.61 over intense optimism regarding the latest acquisition deal, Onex shares had rounded the day off 4 percent higher at C$78.52.