EasyJet shareholders approved the £5.7 billion (€7 billion) takeover by Apollo on Wednesday. This move brings the budget airline closer to a private equity buyout. The vote showed that 97.07% of scheme shares were in favor. Additionally, 83.29% of voting shareholders supported the deal, which will remove EasyJet from the London stock market after over 25 years.
Key Details
The deal is expected to finalize before the end of the first quarter of next year. This is pending regulatory approval in the EU. Officials are preparing to review airline ownership rules. They want to prevent foreign investors from gaining effective control of carriers, according to the company. EasyJet's board had previously rejected lower bids from rival Castlelake. They later endorsed Apollo's offer in August, which valued shares at 715 pence each.
Background
Apollo has committed to keeping current staffing levels for one year after the acquisition. However, EasyJet plans to make redundancies before the deal to cut costs. This comes amid ongoing challenges, including the conflict in Iran. Current shareholders can roll their shares into the new ownership entity. However, a City AM analysis indicated that those who keep their stakes may face unilateral seizure of their shares and are unlikely to receive dividends.
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The approval is likely to influence the airline sector. It may particularly affect EasyJet's stock and investor sentiment toward private equity buyouts in aviation. Investors will watch for the upcoming EU regulatory review, which will determine the deal's final approval.
Based on reporting by: irishtimes.com, cityam.com