EasyJet has accepted a takeover bid valued at £5.7 billion from Apollo Global Management, a private equity firm based in the United States. This follows the withdrawal of Castlelake, a competing bidder, from the acquisition process. Under the terms of the agreement, Apollo will offer £7.15 for each easyJet share, with the transaction anticipated to be finalized by March 2027, pending regulatory approvals.
The bidding process saw easyJet initially leaning towards a sale to Castlelake before Apollo increased its offer, igniting a competitive situation. Eventually, Castlelake chose not to proceed with a final offer. Despite the change in ownership, easyJet’s founder, Stelios Haji-Ioannou, and his family are expected to maintain their current shareholding. Apollo’s ownership stake will be limited to 49.9%, with a distinct shareholding arrangement to ensure compliance with European Union ownership regulations.
Apollo has pledged to maintain easyJet’s headquarters in both the UK and the European Union, while also committing to support the airline’s current growth strategy. The private equity firm is optimistic about the long-term potential of easyJet’s operations across the European and UK aviation sectors. The airline’s board has endorsed the Apollo offer, highlighting that it delivers immediate and attractive value to shareholders while acknowledging the airline’s robust future prospects.
The announcement of the deal follows a period of volatility in easyJet’s share price, which initially dropped sharply after Castlelake’s withdrawal. However, the confirmation of Apollo’s successful bid led to a recovery in share value as investors reacted positively to the news. The proposed takeover signifies a significant shift for easyJet as it navigates its future under new ownership while remaining focused on its established market presence and strategic initiatives.