WestJet Airlines News: WJAFF Stock Soars on Acquisition Deal
WestJet Airlines (OTCMKTS:WJAFF) had a momentous Monday as the company announced that it has agreed to be acquired by Gerry Schwartz, the billionaire founder, chairman and CEO of Onex Corporation.
Source: Shutterstock
The private equity firm reached an agreement with Canada’s second-biggest carrier in one of Schwartz’s company’s biggest buyout deals ever. 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 WestJet Airlines deal is valued at around C$5 billion when including debt, according to a statement from the Toronto-based firm on Monday. “This doesn’t represent any big strategic pivot or transformational change for the company — we really invested in an existing team, an existing culture and an existing plan,” Tawfiq Popatia, a managing director at Onex, said in an interview.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This marks the first major leveraged acquisition of an airline since 1989, back when Northwest Airlines agreed to be acquired by an investor group that took it private. This particular deal will likely be beneficial for Onex, as the firm has been after the airline for a long while.
Throughout the process of pursuit WestJet Airlines, Onex has invested in various companies in the aerospace sector, including Spirit AeroSystems Holdings Inc, among others.
WJAFF stock is soaring roughly 59.2% on Monday following the acquisition news.
More From InvestorPlace
The post WestJet Airlines News: WJAFF Stock Soars on Acquisition Deal appeared first on InvestorPlace.
