In a significant development in the aviation sector, EasyJet has accepted a £5.7 billion takeover offer from Apollo Global Management, a US-based private equity firm. This decision follows the withdrawal of Castlelake, another potential buyer, from the acquisition process. Apollo has agreed to pay £7.15 per share for EasyJet, with the transaction anticipated to finalize by March 2027, pending regulatory approvals.
Initially, EasyJet had been leaning towards a sale to Castlelake. However, Apollo’s decision to enhance its bid led to increased competition, ultimately resulting in Castlelake stepping back from the race. Under the terms of the new arrangement, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding. Apollo’s ownership stake is set to remain below 49.9%, ensuring compliance with European Union ownership regulations through a specially crafted shareholding structure.
Apollo has expressed its commitment to preserving EasyJet’s operational bases in both the United Kingdom and the European Union. The firm also plans to support the airline’s existing growth trajectory, recognizing significant long-term opportunities within EasyJet’s extensive aviation network across Europe and the UK.
The proposal from Apollo has been welcomed by EasyJet’s board, which views the offer as providing shareholders with an immediate and appealing return, while also acknowledging the airline’s solid position and future potential. This announcement followed a period of volatility in EasyJet’s share price, which initially dropped after Castlelake’s exit but later rebounded as investors reacted positively to the confirmed deal with Apollo.