EasyJet has accepted a £5.7 billion takeover offer from Apollo Global Management, a US-based private equity firm, following the withdrawal of a competing bid by Castlelake. Under the terms of the agreement, Apollo will acquire easyJet shares at a price of £7.15 each, with the transaction anticipated to conclude by March 2027, pending regulatory approvals.
The acquisition came after a competitive bidding process in which easyJet initially leaned towards a sale to Castlelake. However, Apollo’s increased offer swayed the airline, leading to Castlelake’s decision to withdraw from the race without submitting a final bid. The move leaves easyJet’s founder, Stelios Haji-Ioannou, and his family retaining their current shareholding while Apollo’s ownership will be limited to a 49.9% stake. This structure is designed to ensure compliance with European Union regulations regarding airline ownership.
Apollo has pledged to preserve easyJet’s headquarters in both the UK and the European Union, while also supporting the airline’s existing growth initiatives. The private equity firm expressed confidence in the long-term potential of easyJet’s operations across the UK and Europe, seeing it as a significant opportunity in the aviation sector.
The board of easyJet has endorsed the takeover, highlighting the immediate and appealing value it offers to shareholders, while also acknowledging the airline’s robust position and promising future. The announcement comes in the wake of a sharp decline in easyJet’s share prices following Castlelake’s withdrawal, which later rebounded as investors responded positively to the confirmed Apollo deal.