The British airline easyJet has announced its acceptance of a £5.7 billion acquisition deal from Apollo Global Management, a private equity firm based in the United States. This decision follows the withdrawal of Castlelake, a competitor in the takeover bid. Under the terms of this agreement, Apollo will purchase easyJet shares at £7.15 each, with the transaction expected to finalize by March 2027, pending the usual regulatory approvals.
Initially, easyJet had shown a preference for a potential acquisition by Castlelake. However, Apollo’s decision to raise its offer led to a competitive bidding scenario. Ultimately, Castlelake chose not to make a final offer, clearing the path for Apollo. As a part of the new ownership arrangement, Stelios Haji-Ioannou, the founder of easyJet, and his family are anticipated to maintain their current shareholding. Apollo’s ownership will be limited to 49.9%, accommodating a tailored shareholding structure to align with European Union ownership regulations.
Apollo has expressed its commitment to preserving easyJet’s operations within both the UK and EU, ensuring the airline’s headquarters remain in these regions. The firm has also pledged to support easyJet’s existing strategies for growth. Apollo views easyJet’s aviation network across Europe and the UK as having substantial long-term growth potential.
The board of easyJet has expressed that the deal offers shareholders immediate and attractive value, while also acknowledging the airline’s strong performance and promising future. The announcement of the acquisition comes on the heels of a significant drop in easyJet’s share prices following Castlelake’s withdrawal from the bidding. However, the confirmation of Apollo’s involvement has since led to a rebound as investors responded positively to the news.