EasyJet has accepted a £5.7bn takeover bid from US investment firm Apollo Global Management, trumping a rival offer from Castlelake. The airline announced the agreement in principle on Friday, valuing the company at £5.7bn ($7.66bn).
Immediate Action & Core Facts
EasyJet’s board recommended Apollo’s cash offer of £7.15 per share, an 81% premium over the stock’s pre-bid closing price. The deal surpasses Castlelake’s £5.5bn offer, which EasyJet had initially accepted before Apollo’s higher bid emerged. Shares surged 13.3% to 666p in early trading, marking a 29.7% gain this year.
Deeper Dive & Context
Apollo’s offer includes a Stub Equity Alternative, allowing shareholders to retain voting rights by rolling their shares into the investment vehicle. The firm, which part-owns Atlas Air and lent $745m to Virgin Atlantic, must finalize its offer by August 7. Castlelake’s bid, deemed ‘highly opportunistic’ by EasyJet, was rejected four times before the Apollo deal.
The takeover marks another foreign acquisition of a London-listed company, following bids for Tate & Lyle, Beazley, and Schroders. EasyJet, founded by Sir Stelios Haji-Ioannou in 1995, would join Apollo’s growing aviation portfolio if the deal closes.