In a significant industry development, EasyJet has accepted a £5.7 billion acquisition bid from Apollo Global Management, a move confirmed after Castlelake, a competing bidder, stepped back from the process. This agreement stipulates Apollo will purchase EasyJet shares at £7.15 each, with plans to finalize the deal by March 2027, contingent upon receiving the required regulatory approvals.
Initially, EasyJet had leaned towards a potential sale to Castlelake; however, Apollo’s decision to enhance its offer led to a competitive bidding atmosphere. Castlelake ultimately opted not to present a final counteroffer. Under the terms of the acquisition, EasyJet’s founder Stelios Haji-Ioannou and his family are expected to maintain their current shareholdings. Meanwhile, Apollo’s ownership stake will be limited to 49.9% to ensure compliance with European Union ownership regulations, supported by a specific shareholding structure designed for this purpose.
Apollo has pledged to uphold EasyJet’s existing growth strategy while maintaining the airline’s headquarters in both the United Kingdom and the European Union. The private equity firm expresses confidence in the airline’s long-term growth potential across its European and UK aviation markets. EasyJet’s board of directors has endorsed the offer, highlighting the immediate and appealing value it brings to shareholders, while also acknowledging the airline’s robust prospects moving forward.
The announcement of Apollo’s successful bid follows a period of volatility in EasyJet’s share prices, which initially plummeted in response to Castlelake’s withdrawal. However, the confirmation of the Apollo agreement has since reassured investors, leading to a recovery in the airline’s stock value.