EasyJet has agreed to a takeover by Apollo Global Management, a private equity firm based in the United States, in a transaction valued at £5.7 billion. This agreement follows the withdrawal of Castlelake, a rival bidder, from the acquisition contest. Apollo plans to pay £7.15 per share for easyJet, with expectations of finalizing the deal by March 2027, pending necessary regulatory approvals.
Initially, easyJet had leaned towards a sale to Castlelake, but Apollo’s decision to boost its offer triggered a competitive bidding situation. Ultimately, Castlelake opted out of submitting a final proposal. Under the new arrangement, easyJet’s founder Stelios Haji-Ioannou and his family are anticipated to maintain their existing shareholdings, while Apollo’s ownership will be limited to 49.9%. This structure aims to align with European Union ownership rules by implementing a separate shareholding framework.
Apollo has expressed its commitment to preserving easyJet’s headquarters in both the UK and the EU, and endorsing the airline’s current growth strategy. The private equity firm believes there is considerable long-term potential in easyJet’s aviation network across Europe and the UK. By agreeing to this offer, easyJet’s board sees an opportunity to deliver immediate and compelling value to shareholders, while also acknowledging the airline’s robust prospects moving forward.
The announcement of Apollo’s acquisition comes on the heels of a sharp decline in easyJet’s share price following Castlelake’s exit from the bidding. However, the confirmation of the Apollo deal led to a recovery in stock prices as investors reacted positively to the news.