Apollo agrees £5.7bn easyJet take-private deal as Castlelake exits bidding race
TOP STORY: Apollo Global Management has agreed to acquire London-listed airline easyJet in a transaction valuing the low-cost carrier at approximately £5.7bn ($7.7bn), bringing an end to a months-long takeover contest after rival bidder Castlelake withdrew from the process, according to a report by Reuters.
Apollo Global Management has successfully acquired London-listed low-cost carrier easyJet in a deal valued at approximately £5.7 billion ($7.7 billion). This acquisition concludes a months-long bidding war, with rival Castlelake deciding to withdraw from the competition. The transaction marks another significant take-private by a US private equity firm in a UK-listed company, reflecting ongoing interest from financial sponsors in businesses trading at lower valuations compared to their US-based counterparts.
The deal was backed by easyJet's board, led by founder Stelios Haji-Ioannou and his family, who unanimously recommended the offer. Apollo, which oversees around $1.05 trillion in assets, plans to back easyJet's growth strategy while privately owned, including accelerating the expansion of its holiday business. The acquisition comes amid challenges for European airlines, including higher operating costs and uncertainty due to the Iran conflict, which has led to soaring jet fuel prices and further pressure on profit margins.
The transaction specifically focuses on preserving easyJet's ability to retain its European Union operating rights, given the airline's bases across the bloc. Apollo's investment funds will hold the remaining shares, capped at 49.9%, while the EU management trust will own up to 5% and the Haji-Ioannou family and other continuing shareholders will retain between 45.1% and 49.9% of the ordinary capital of the acquisition vehicle.
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