In a significant development in the aviation industry, EasyJet has accepted a £5.7 billion acquisition offer from Apollo Global Management, a US-based private equity firm, following the withdrawal of competitor Castlelake from the bidding process. Under the terms of the deal, Apollo will pay £7.15 per share for EasyJet, with the transaction expected to conclude by the close of March 2027, pending necessary approvals.
The bidding war initially saw EasyJet leaning towards a potential sale to Castlelake. However, Apollo’s decision to enhance its offer led to a competitive atmosphere, ultimately resulting in Castlelake stepping away from submitting a final bid. This strategic move by Apollo has paved the way for its acquisition, which will see EasyJet founder Stelios Haji-Ioannou and his family maintaining their current shareholding. Apollo’s ownership will be limited to 49.9%, adhering to a distinct shareholding arrangement to meet European Union ownership regulations.
Apollo has expressed a commitment to sustaining EasyJet’s operations within the UK and European Union, aligning with the airline’s existing growth plans. The private equity firm recognizes substantial long-term opportunities within EasyJet’s aviation network across Europe and the UK. This strategic vision is expected to bolster EasyJet’s market position and drive its future expansion.
The EasyJet board has endorsed Apollo’s offer, highlighting its provision of immediate and appealing value to shareholders while acknowledging the airline’s robust performance and promising outlook. This endorsement comes after EasyJet experienced a notable decline in its share value following Castlelake’s withdrawal. The confirmation of the Apollo deal, however, has restored investor confidence, reflected in the subsequent recovery of EasyJet shares.