Key facts
- Easyjet shareholders face potential dilution of their stakes.
- Shareholders are unlikely to receive dividends if they retain their investment.
- Rolled-over shares will be subordinated.
- Apollo will receive a 14% annual dividend on its stake.
- Apollo is undertaking a takeover of Easyjet.
Easyjet shareholders are set to experience a dilution of their ownership stakes and are unlikely to receive dividends if they decide to retain their investment in the airline following Apollo's takeover. The deal involves rolling over existing shares, which will be subordinated. This subordination means that Apollo, the acquiring entity, will be able to receive a 14% annual dividend on its stake in the company. This structure prioritizes Apollo's returns over those of existing Easyjet shareholders who opt to continue their investment, potentially diminishing the value and income generated from their holdings.