WestJet shareholders won’t get Dec division as Onex merger closes

WestJet Airlines Ltd. shareholders won’t be receiving a quarterly division this month after Onex Corp. announced a execution of a merger of a Calgary-based airline.

WestJet and Onex contend a remuneration won’t be done since a understanding has sealed before Dec. 18.

The airline’s house of directors had announced a 14 cents per share division on Oct. 28 to be paid on Dec. 31 to shareholders subsequent week.

The Toronto-based private equity organisation and a dependent supports contend a understanding sealed following a final regulatory capitulation Tuesday by a Canadian Transportation Agency that found WestJet continued to accommodate Canadian tenure and control mandate following a squeeze by Onex.

Onex says a apportionment of a sum equity investment is about $345 million as a singular partner and largest financier in Onex Partners V. It declined to divulge serve terms of a transaction.

WestJet shareholders will accept $31 in money for any share and a shares will be delisted from a Toronto Stock Exchange within a few trade days.

The Canadian Transportation Agency compulsory Onex to rectify a bylaws to safeguard that matters associated to WestJet be voted by a house of directors where a infancy of Canadian directors are present.

Analyst Chris Murray of AltaCorp Capital says a travel regulator’s conditions were “not astonishing though should be manageable.”

“While a examination by a CTA has taken longer than a initial expectations, a integrity that Onex needs to work as Canadian as a primogenitor association of Kestrel Bidco, a car combined to promote a takeover transaction, does not seem onerous,” he wrote in a report.

Article source: https://www.cbc.ca/news/business/westjet-shareholders-won-t-get-december-dividend-onex-acquisition-closes-1.5392549?cmp=rss