Key facts
- Apollo has agreed to a £5.7bn takeover offer for easyJet.
- The offer of £7.15 per share is higher than Castlelake's previous proposal.
- EasyJet's board is likely to recommend the Apollo deal to shareholders.
- Apollo will address EU local ownership regulations.
- EasyJet is one of Europe's largest airlines with over 19,000 employees and 1,200 routes.
Apollo, a US private equity firm, has gatecrashed the sale of easyJet with a surprise £5.7bn takeover offer, beating a rival bid from Castlelake. The airline has reached an agreement in principle with Apollo for an offer of £7.15 per share, which it stated delivers a superior outcome for shareholders compared to Castlelake's latest proposal of £6.90 per share.
Apollo's offer represents a 22% premium against easyJet's closing share price on the previous day and an 81% premium compared to its price before Castlelake's bid period began. The firm has also committed to taking all necessary steps to comply with EU local ownership rules, a potential hurdle that Castlelake had planned to navigate by partnering with two EU nationals.
EasyJet, one of Europe's largest airlines employing over 19,000 people, operates around 1,200 routes across 35 European countries. Its attractiveness to potential buyers includes high brand recognition, a substantial fleet of over 350 aircraft, a significant order book, and strong slot positions at congested European airports like Gatwick and Paris Charles de Gaulle.
Previously, easyJet had rejected four takeover offers from Castlelake, which manages a stake of approximately 2.14% in the carrier. Castlelake had until August 3 to make a formal offer. The airline's share price had been temporarily depressed, partly due to the impact of the US-Israel war on the travel sector, closing at £5.58 on Friday and having fallen over 30% in the past year before the initial bid emerged in June.