Key facts
- EasyJet has accepted a £5.7bn takeover offer from US private equity firm Apollo Global Management.
- The deal values EasyJet shares at £7.15 each.
- Rival bidder Castlelake withdrew its pursuit of the airline.
- Founder Sir Stelios Haji-Ioannou and his family will remain significant shareholders.
- Apollo plans to support EasyJet's existing strategy and aims for long-term growth.
- The takeover is anticipated to be completed by the end of March 2027, subject to regulatory approval.
EasyJet has formally accepted a £5.7bn takeover offer from US private equity firm Apollo Global Management, marking a significant shift in the airline's ownership structure. The agreement follows the withdrawal of a rival bid from US investment firm Castlelake, which had been engaged in a bidding war for the no-frills carrier.
Under the terms of the deal, EasyJet shareholders will receive £7.15 per share. Apollo has stated its intention to support EasyJet's existing strategy and aims to accelerate the airline's operational and commercial ambitions, emphasizing a commitment to enhancing connectivity across Europe and the UK. The private equity firm has also indicated that it does not plan to cut jobs for at least 12 months following the completion of the takeover.
Founder Sir Stelios Haji-Ioannou and his family, who currently own approximately 15% of the business, have expressed their support for Apollo's plans for growth and intend to remain as long-term shareholders. To comply with European Union regulations regarding foreign ownership of airlines, Apollo plans to structure the shareholding such that EU-based shareholders, including the Haji-Ioannou family, will own around half of the business, with Apollo holding a maximum of 49.9%. An 'EU Trust' shareholding group will retain up to 5%.
EasyJet's chair, Stephen Hester, noted that the board had carefully evaluated Apollo's proposal against the airline's standalone prospects, concluding that the offer delivers immediate, certain, and attractive value for shareholders. EasyJet CEO Kenton Jarvis welcomed Apollo's commitment to the business and its employees, highlighting the firm's experience in the aviation sector as a strong partnership for future growth.
The takeover is expected to be completed by the end of March 2027 and is subject to regulatory approvals. The potential delisting of EasyJet from the stock exchange has been noted as a blow to London's market, with retail investors potentially losing a familiar name.