EasyJet has confirmed its acceptance of a £5.7 billion acquisition offer from Apollo Global Management, a US-based private equity firm, following the withdrawal of rival Castlelake from the bidding war. Under the terms of the agreement, Apollo will purchase easyJet shares at £7.15 each. The completion of the deal is anticipated by March 2027, contingent upon receiving the necessary regulatory approvals.
Initially, easyJet had leaned towards a potential sale to Castlelake, but the dynamics shifted when Apollo increased its bid, leading to a competitive bidding scenario. Castlelake eventually opted out of making a final offer. As part of the acquisition plan, Stelios Haji-Ioannou, the founder of easyJet, along with his family, will maintain their current shareholding. Meanwhile, Apollo’s ownership stake is set to be capped at 49.9% to align with European Union ownership regulations. A distinct shareholding structure will be implemented to ensure compliance.
Apollo Global Management has assured stakeholders of its commitment to sustaining easyJet’s headquarters in both the UK and the European Union while supporting the airline’s present growth initiatives. The private equity firm sees promising long-term opportunities within easyJet’s aviation network across Europe and the UK, which aligns with its strategic investment goals.
The board of easyJet has expressed that Apollo’s offer provides shareholders with immediate and compelling value, while also acknowledging the airline’s robust performance and future potential. This development arrives amidst a period of fluctuating stock prices for easyJet. Following Castlelake’s withdrawal, the airline’s shares experienced a sharp decline, only to rebound as investor confidence was restored with the announcement of the confirmed deal with Apollo.