Apollo’s £5.7bn easyJet buyout to generate £334m in advisory fees
Bankers and advisers involved in Apollo Global Management's £5.7bn acquisition of easyJet are expected to receive approximately £334m in fees, making the transaction one of the UK's most lucrative takeovers for dealmakers this year, according to a report by the Financial Times.
EasyJet's £5.7 billion acquisition by Apollo Global Management is anticipated to yield approximately £334 million in advisory fees, positioning the deal among the most lucrative takeovers in the UK this year, according to a Financial Times report. Apollo will allocate about £280 million in fees, encompassing £190 million for financing the acquisition.
Meanwhile, easyJet will contribute £54 million. Advisers to Apollo include Barclays, PJT Partners, Citigroup, and Paul Weiss law firm. Conversely, easyJet's advisers consist of Evercore, BNP Paribas, Panmure Liberum, and Clifford Chance. The acquisition, which Apollo secured by surpassing Castlelake, had been in talks with the airline for over two decades.
Following the deal, easyJet will be privatized, with Apollo aiming to shift the business towards premium travel and enhance financial performance. The ownership structure has been adjusted to adhere to EU aviation regulations mandating majority European ownership and control. The revised structure will see easyJet's board comprising 10 directors, with four from Apollo and two appointed by existing shareholders.
Founder Sir Stelios Haji-Ioannou is set to transfer his current 15% share to the private entity, which would result in the family holding between 45.1% and 49.9%.
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