EasyJet accepts £5.7bn takeover offer from Apollo Global

EasyJet has agreed to a £5.7 billion takeover by Apollo Global Management after rival bidder Castlelake withdrew from the acquisition process. The airline confirmed the acceptance of Apollo's offer on Thursday, which values the company at £7.15 per share. This decision follows months of negotiations and bidding between the two private equity firms.

Castlelake Withdraws

Castlelake, which had previously made a series of unsolicited offers for EasyJet, announced it would not pursue a firm bid. The firm expressed appreciation for its engagement with EasyJet's board but ultimately chose to withdraw, ending a competitive bidding situation. Earlier, Castlelake's preliminary offer of £5.5 billion had been accepted, but it was quickly surpassed by Apollo's higher bid.

Shareholder Structure

Under the terms of the agreement, EasyJet's founder, Stelios Haji-Ioannou, and his family will retain their shareholding in the airline. Shareholders will have the option to sell or transfer up to 49.9% of their shares. An EU Trust will hold up to 5% of the company to comply with European Union foreign ownership regulations. Apollo has committed to maintaining EasyJet's UK and EU headquarters and supporting its current business strategy.

Apollo's European private equity lead, Alex van Hoek, stated that EasyJet holds a strong position in European aviation and emphasized the firm's commitment to enhancing connectivity for travelers across Europe and the UK. The takeover is expected to be completed by the end of March 2027.

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Based on reporting by: cityam.com, theguardian.com