EasyJet has reached a £5.7 billion acquisition agreement with Apollo Global Management, a US private equity firm, following the withdrawal of competitor Castlelake from the bidding process. Under this new arrangement, Apollo will purchase easyJet shares at a rate of £7.15 each. The transaction is anticipated to conclude by March 2027, pending necessary regulatory approvals.
Initially, easyJet had leaned towards a sale to Castlelake, but an increased offer from Apollo sparked a competitive auction. Ultimately, Castlelake opted not to present a final bid. The founder of easyJet, Stelios Haji-Ioannou, along with his family, is expected to maintain their current shareholding. Apollo will limit its ownership to 49.9% through a unique shareholding structure, ensuring compliance with European Union ownership laws.
Apollo has pledged to sustain easyJet’s headquarters in both the UK and the EU, supporting the airline’s existing growth strategies. The firm sees considerable long-term opportunities within easyJet’s UK and European aviation networks. This strategic move aims to bolster the airline’s market position and expand its operational capabilities across the region.
The board of easyJet views Apollo’s offer as providing immediate and attractive value to shareholders, while also recognizing the airline’s robust potential and future growth prospects. This agreement comes in the wake of a sharp decline in easyJet’s share prices following Castlelake’s withdrawal, which later rebounded with the confirmation of Apollo’s successful bid.