Onex slashed proposed offer for WestJet because of grounding of Boeing 737 MAX planes
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June 25, 2019 - by ERIC ATKINSTRA for theglobeandmail.com
Onex Corp. slashed its proposed offer for WestJet Airlines Ltd. as a result of the grounding of the airline's Boeing 737 Max aircraft, and other uncertainties, before agreeing to pay $31 a share for Canada's second-biggest carrier.
The Toronto-based private equity fund made a written, non-binding offer on March 25 of $35.75 a share to buy the Calgary-based airline, with conditions that included satisfactory due diligence. The offer followed a few weeks of talks, but coincided with the grounding of the world's fleet of 737 Max planes after two fatal crashes that killed 346 people.
The two sides eventually agreed on a price of $31 a share – or $3.5-billion – in a friendly deal announced on May 13. Shareholders of WestJet will vote on the Onex offer on July 23.
Two-thirds of WestJet investors must...