EasyJet has entered into a £5.7 billion acquisition agreement with Apollo Global Management, a US-based private equity firm. This decision follows the withdrawal of Castlelake, another potential buyer that had initially been favored by EasyJet. Apollo’s offer involves paying £7.15 per share for EasyJet, and the transaction is projected to conclude by March 2027, pending necessary regulatory approvals.
The competition for EasyJet heated up after Apollo raised its initial bid, surpassing the offer recommended by EasyJet from Castlelake. Despite the competitive bidding process, Castlelake chose not to present a final proposal. Under the terms of the acquisition, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholdings. Apollo’s ownership stake will be limited to 49.9%, with a different shareholding arrangement in place to ensure compliance with European Union ownership regulations.
Apollo has assured that it will uphold EasyJet’s UK and EU headquarters, aligning with the airline’s existing growth plans. The private equity firm is optimistic about the long-term potential of EasyJet’s aviation network in both Europe and the UK. This strategic move highlights Apollo’s commitment to supporting EasyJet’s operations and expansion efforts.
The board of EasyJet has described the deal as offering shareholders immediate and attractive value, while also acknowledging the airline’s robust performance and future opportunities. This announcement came after EasyJet’s share prices experienced a significant drop due to Castlelake’s exit from the bidding war. However, the confirmation of Apollo’s acquisition led to a recovery in investor confidence, boosting the airline’s stock value.