Key facts
- Apollo has agreed to acquire EasyJet for £5.7 billion.
- The offer values the airline at £7.15 per share.
- EasyJet's board is now minded to recommend Apollo's proposal.
- The board is no longer minded to recommend Castlelake's earlier offer.
- Apollo has until August 7 to make a firm offer.
US private equity firm Apollo Management has agreed in principle to acquire budget airline EasyJet for £5.7 billion, trumping an earlier bid from Castlelake. The company's board stated it is minded to recommend Apollo's all-cash offer, which values the business at £7.15 per share. This represents an 80% premium on EasyJet's closing share price. Previously, the board had agreed in principle to accept a £6.90 per share deal from Castlelake, worth approximately £5.2 billion, but analysts considered it to undervalue the airline. The EasyJet board has now indicated it is "no longer minded" to recommend the Castlelake proposal. Apollo's offer allows current shareholders to remain invested under its ownership, believing in EasyJet's current strategy and management. Apollo has been set a deadline of August 7 to make a firm offer, while Castlelake's deadline is August 3. A potential hurdle for any takeover is that EU regulations require the carrier to be majority-owned by EU citizens; Castlelake had proposed partnering with EU nationals Peter Bellew and Mark Breen to establish an EU-based company with majority control.