WestJet Airlines Ltd. (TSX: WJA) ("WestJet") announced that Onex Corporation (TSX: ONEX) ("Onex") has received approval from the Minister of Transport (Canada) on the basis that the proposed acquisition of WestJet by Onex does not raise public interest issues as related to national transportation.
WestJet and Onex entered into a definitive agreement on May 12, 2019, for the proposed acquisition of WestJet by Onex under a plan of arrangement pursuant to which each outstanding share of WestJet will be exchanged for $31.00 in cash (the "Arrangement").
Receipt of the Minister of Transport's approval is one of the conditions to closing of the Arrangement.
Ed Sims, WestJet President and CEO said, "We welcome the decision by the Minister of Transport, and we will continue to cooperate with the necessary authorities on the remaining regulatory approvals."
The Arrangement is still subject to other conditions to closing including other regulatory approvals, approval by the securityholders of WestJet at a special meeting to be held on July 23, 2019 and final approval of the Arrangement by the Court of Queen's Bench of Alberta.
Further information regarding the Arrangement is provided in WestJet's management information circular in respect of the special securityholders meeting. Assuming the approval of the Arrangement by WestJet's securityholders and the timely receipt of regulatory approvals, the transaction is expected to close in the latter part of 2019.