In a significant move within the aviation industry, easyJet has accepted a takeover bid valued at £5.7 billion from Apollo Global Management, a prominent US-based private equity firm. The decision follows the withdrawal of Castlelake, another contender in the acquisition race, which initially appeared favored. Under the terms of the agreement, Apollo will purchase easyJet shares at £7.15 each, with the transaction anticipated to finalize by March 2027, pending regulatory approvals.
Initially, easyJet was inclined towards a potential sale to Castlelake, which set off a competitive bidding scenario. However, as Apollo increased its offer, the dynamics shifted, leading Castlelake to opt out of submitting a final proposal. Throughout this process, easyJet’s founder, Stelios Haji-Ioannou, along with his family, is expected to maintain their existing equity in the company under the new ownership framework.
To adhere to European Union regulations regarding ownership, Apollo’s stake in easyJet will be limited to 49.9%. A separate shareholding arrangement is planned to ensure compliance. The private equity firm has pledged to keep easyJet’s UK and EU headquarters intact while endorsing the airline’s current growth strategies. Apollo perceives a promising future in easyJet’s operations across the European and UK markets.
The easyJet board has expressed confidence in the deal, highlighting the immediate and attractive value it offers to shareholders, while acknowledging the robust potential and resilience of the airline. This development followed a volatile period for easyJet’s shares, which saw a decline after Castlelake’s exit from the bidding process, only to rebound with the confirmation of Apollo’s successful proposal.