WestJet purchase good for employees, airline: Business prof.

Toronto-based Onex Corp. has signed what it describes as a friendly agreement to buy Calgary-based WestJet.

Under the agreement, Onex is set to pay out $31 per share for the airline which works out to around $5 billion.

The deal still needs to be approved by shareholders but McGill University business professor Karl Moore doesn’t expect that will be a problem.

“You’ve got to have WestJet shareholders approve it (and) at 67 per cent over the current price they’re delighted,” he told 650 CKOM on Monday morning.

Purchasing the airline also requires approvals from regulators and court.

Considering Onex is also a Canadian company, Moore believes it will pass without issue.

“I think the Canadian government is going to go, ‘Fine, it’s not relevant for us to get involved,’ ” he said.

Ultimately Moore sees the acquisition as a positive for the employee-owned airline.

“What it means is (WestJet officials) have very deep pockets behind them and very patient pockets as well and that’s part of the attraction,” Moore said.

In a media release, WestJet founder Clive Beddoe said the company would keep its Calgary headquarters after the deal goes through.

Onex has a diverse portfolio. On its website, it lists dozens of investments including Cineplex, Purolator, Chatters Canada and Beatrice Foods.

— With files from the Canadian Press