In a major development in the aviation industry, easyJet has agreed to a takeover offer valued at £5.7 billion from Apollo Global Management, a private equity firm based in the United States. This decision follows the withdrawal of a competing bid from Castlelake. Under the terms of the agreement, Apollo will purchase easyJet shares at a rate of £7.15 each. The completion of this deal is anticipated by March 2027, pending the necessary regulatory approvals.
The bidding process for easyJet began with an initial recommendation for a sale to Castlelake. However, Apollo upped its bid, sparking a competitive environment that eventually led Castlelake to exit the race without submitting a final offer. Despite this change in ownership, the founding family of easyJet, led by Stelios Haji-Ioannou, is expected to maintain their current shareholding. Apollo’s ownership will be restricted to a maximum of 49.9%, with a specially structured shareholding arrangement to ensure compliance with European Union regulations on airline ownership.
Apollo Global Management has pledged to uphold easyJet’s operational headquarters in both the United Kingdom and the European Union. The firm has also expressed its commitment to supporting the airline’s existing expansion plans. Apollo has identified significant long-term growth opportunities within easyJet’s network across Europe and the UK, underscoring the firm’s confidence in the airline’s future.
The board of easyJet has endorsed Apollo’s offer, highlighting that it provides immediate and attractive value to shareholders while acknowledging the airline’s robust potential. This announcement followed a period of volatility in easyJet’s share price; the stock initially dropped sharply after Castlelake’s withdrawal, but regained strength as investors reacted positively to the news of the confirmed Apollo acquisition.