EasyJet agrees £5.7bn takeover from US private equity firm
Airline says it has accepted offer from Apollo Global Management after rival bidder Castlelake walks away EasyJet has formally agreed to a £5.7bn takeover from US private equity firm Apollo Global Management. The airline announced it had accepted a firm offer on Thursday after a rival bidder, Castlelake, said it would no longer pursue its own attempted acquisition. Continue reading...
EasyJet has formally agreed to a £5.7 billion takeover bid from US private equity firm Apollo Global Management. The airline announced the acceptance of the firm's offer on Thursday, following a rival bidder, Castlelake, deciding not to pursue its own acquisition attempt. The deal will proceed at a price of £7.15 per share, a figure initially proposed by Apollo last month.
The formal agreement was reached just 24 hours before the deadline for both parties to submit final offers, with Castlelake opting not to engage in a bidding war.
Under the terms of the agreement, EasyJet's founder, Stelios Haji-Ioannou, and his family will maintain their stake in the company under the new ownership structure. Shareholders are given the option to either sell or transfer their shares, with a maximum limit of 49.9% being sold. An "EU Trust" shareholding group will retain up to 5%, a provision designed to comply with European Union foreign ownership regulations for airlines, with Apollo's stake capped at 49.9%.
The takeover is anticipated to be finalized by the end of March 2027. Apollo has pledged to retain EasyJet's UK and EU headquarters and support the airline's current strategic direction, aiming to foster sustainable growth. European private equity lead Alex van Hoek praised EasyJet's market position and commitment to enhancing connectivity throughout Europe and the UK.
EasyJet's chairman, Stephen Hester, stated that the board had considered Apollo's proposal alongside the company's independent prospects, agreeing that the offer adequately reflects the business's quality and provides immediate, certain, and attractive value for shareholders.
Chief executive Stephen Hester echoed these sentiments, expressing appreciation for Apollo's commitment to the company and its workforce. He believed that Apollo's aviation industry experience makes it an ideal partner for EasyJet as it accelerates its growth plans and continues to provide exceptional value and service to customers. Following Castlelake's withdrawal from the bidding process, EasyJet's share price initially fell by 10% before recovering slightly to a 3% increase from the start of the day.
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