EasyJet has accepted a £5.7 billion takeover bid from Apollo Global Management, a US private equity firm, following the withdrawal of competitor Castlelake from the acquisition contest. Apollo plans to acquire EasyJet by paying £7.15 per share, with the transaction anticipated to conclude by March 2027, contingent upon receiving all necessary approvals.
The initial recommendation from EasyJet was in favor of a sale to Castlelake. However, Apollo’s improved offer led to a competitive bidding environment, ultimately resulting in Castlelake’s decision not to place a final bid. The founder of EasyJet, Stelios Haji-Ioannou, and his family are slated to maintain their current shareholding under the new ownership arrangement. Apollo will hold a maximum stake of 49.9%, with a separate shareholding structure devised to ensure compliance with European Union ownership regulations.
Apollo has pledged to preserve the airline’s headquarters in both the UK and the European Union and to support EasyJet’s existing growth strategy. The firm recognizes significant long-term potential in EasyJet’s operations across the European and UK aviation networks. This commitment aligns with Apollo’s vision to foster EasyJet’s future expansion and operational success.
The board of EasyJet has expressed that the offer presents shareholders with immediate and compelling value while acknowledging the airline’s robust standing and future opportunities. This announcement follows a sharp decline in EasyJet’s share price after Castlelake’s withdrawal, which was subsequently offset by a recovery as investors reacted positively to the confirmed agreement with Apollo.