WestJet to be taken private in C$3.5 billion cash deal

[May 13, 2019]   (Reuters) - Canada's 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).

Including debt, the deal is valued at about C$5 billion.

As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.

The investment will be led by Onex Partners, Onex's private equity platform focused on larger investment opportunities and WestJet's board has recommended that its shareholders vote in favor of the deal.

The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.

The deal is expected to close in the latter part of this year or early next year, the company said.

CIBC Capital Markets and BofA Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.

(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)

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