In a significant development, EasyJet has finalized a £5.7 billion takeover deal with Apollo Global Management, a prominent US private equity firm. This agreement follows the withdrawal of Castlelake, a competing bidder, from the acquisition race. Under the terms of the deal, Apollo will acquire EasyJet shares at a price of £7.15 each, with the transaction expected to conclude by March 2027, pending necessary regulatory approvals.
The competition to acquire EasyJet intensified after the airline initially recommended a potential sale to Castlelake. However, Apollo’s increased offer spurred a competitive bidding process that ultimately led to Castlelake opting not to submit a final bid. This paved the way for Apollo’s successful acquisition agreement, which includes provisions for EasyJet founder Stelios Haji-Ioannou and his family to maintain their current shareholding. Apollo’s ownership stake will be limited to 49.9%, with a separate shareholding structure to ensure compliance with European Union ownership rules.
Apollo has expressed a strong commitment to preserving EasyJet’s operational hubs in the UK and European Union, signaling its support for the airline’s existing growth strategy. The private equity firm sees substantial long-term potential in EasyJet’s extensive European and UK aviation network, which aligns with its strategic investment goals.
The EasyJet board has endorsed the offer, highlighting that it provides shareholders with immediate and attractive value while acknowledging the airline’s robust future prospects. This endorsement comes in the wake of EasyJet’s shares experiencing a sharp decline following Castlelake’s withdrawal, only to rebound as investors responded positively to the confirmed deal with Apollo.