In a significant development, EasyJet has accepted a £5.7 billion acquisition bid from American private equity firm Apollo Global Management. This decision comes after the withdrawal of Castlelake, a competing bidder. The agreement stipulates that Apollo will purchase EasyJet shares at £7.15 each, with the transaction anticipated to finalize by the end of March 2027, contingent upon necessary approvals.
The bidding process initially saw EasyJet leaning towards a potential sale to Castlelake. However, Apollo’s enhanced offer led to a more competitive atmosphere, eventually culminating in Castlelake opting not to present a final bid. EasyJet’s founder, Stelios Haji-Ioannou, along with his family, is anticipated to maintain their current shareholding under the new framework. Apollo’s investment will be confined to a 49.9% stake, with a distinct shareholding structure devised to ensure the airline meets European Union ownership standards.
Apollo Global Management has pledged to uphold EasyJet’s headquarters in both the UK and the European Union, aligning with the airline’s existing growth strategy. The private equity firm expressed confidence in the long-term potential of EasyJet’s aviation network across Europe and the UK. This strategic move underscores Apollo’s commitment to leveraging EasyJet’s established market presence and operational framework.
The EasyJet board has endorsed the offer, highlighting the immediate and compelling value it provides to shareholders while acknowledging the airline’s robust position and future growth prospects. The announcement of the deal followed a volatile period for EasyJet’s shares, which initially plummeted after Castlelake’s exit but subsequently rebounded with the confirmation of Apollo’s acquisition.