In a significant corporate development, EasyJet has reached a £5.7 billion takeover agreement with Apollo Global Management, a private equity firm based in the United States. This deal comes after another interested party, Castlelake, chose to exit the competitive bidding process. Under the terms of the agreement, Apollo will pay £7.15 for each easyJet share, with the transaction expected to finalize by March 2027, pending necessary regulatory approvals.
Initially, EasyJet was leaning towards a potential acquisition by Castlelake, but Apollo’s improved offer intensified the competition. Ultimately, Castlelake opted not to place a final bid. The deal ensures that EasyJet’s founder, Stelios Haji-Ioannou, and his family will maintain their shareholding. Apollo’s ownership will be limited to 49.9% to meet European Union ownership rules, aided by a unique shareholding structure.
Apollo has pledged to uphold EasyJet’s operational base in both the UK and the EU, aligning with the airline’s existing growth strategies. The private equity firm has expressed confidence in the long-term prospects of EasyJet’s aviation network across Europe and the UK. EasyJet’s board has endorsed the offer, noting that it delivers significant immediate value to shareholders while acknowledging the airline’s robust future potential.
The announcement of Apollo’s takeover bid followed a period of volatility in EasyJet’s stock prices, which saw a sharp decline after Castlelake’s withdrawal. However, the confirmation of Apollo’s involvement has led to a recovery in investor sentiment, with shares rebounding in response to the news.