Description: Other companies may be handing out their quarterly dividends, but not Westjet; at least not this quarter. Though the board had declared a dividend of 14 cents a share at an October meeting, the company is now bypassing the cash payment that was scheduled for December 31. Westjet has been purchased by Onex, and the deal is to close December 18, before the payment date. Onex intends to take the company private by de-listing the shares on the TSX.
Date: December 11, 2019
1) How would you respond to this move if you were a Westjet shareholder?
2) What does taking the company private do for Onex? Why do you think that Onex is making this move?
3) Wiley’s Financial Accounting: Tools for Business Decision-Making, discusses the three important dates around dividends in Chapter 11. What are those three dates?