Britain's EasyJet flies into US hands after takeover
Britain's no-frills airline EasyJet confirmed on Thursday a £5.7-billion takeover by US private equity firm Apollo after a rival American firm pulled out of the bidding. "The boards.. are pleased to announce that they have reached agreement on the terms and conditions of a recommended cash acquisition," EasyJet, which flies mainly across Europe, said in a statement. Earlier on Thursday, US…
EasyJet, a European budget airline, announced on Thursday that it had been acquired by US private equity firm Apollo for £5.7 billion. Earlier in the day, Castlelake, another American investment group, stated it would not make a higher bid for the carrier after its initial £5 billion offer. The takeover is subject to UK takeover rules, which require competing offers until Friday.
Castlelake later confirmed it would not submit a revised bid. EasyJet had previously stated that Apollo's offer, also valued at £5.7 billion, was more favorable to shareholders compared to Castlelake's proposal. Apollo, a global asset manager with over US$1 trillion in assets, has investments in various airlines and has considered partnering with an EU firm to gain majority ownership, which is required by UK and European regulations.
The acquisition comes as EasyJet reported a 70% plunge in net profits to £85 million in the third quarter due to rising jet fuel prices caused by the Middle East conflict. Founded in the 1990s by Stelios Haji-Ioannou, EasyJet is Europe's second-largest carrier by passenger numbers, behind Ryanair.
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- Britain’s EasyJet flies into US hands as takeover confirmed straitstimes.com
