In a significant development within the airline industry, EasyJet has agreed to a takeover by Apollo Global Management, a US private equity firm, to the tune of £5.7 billion. The decision comes after Castlelake, a rival bidder, withdrew from the acquisition contest. Under the terms of the agreement, Apollo will pay £7.15 per share for EasyJet, with the transaction anticipated to finalize by the end of March 2027, pending necessary regulatory approvals.
Initially, EasyJet had leaned towards recommending a sale to Castlelake. However, Apollo’s decision to increase its offer sparked a competitive bidding process. Ultimately, Castlelake opted not to submit a final proposal, clearing the path for Apollo to proceed. The new ownership structure includes an arrangement where EasyJet’s founder, Stelios Haji-Ioannou, and his family will maintain their existing shareholding. Apollo’s stake in the airline will be capped at 49.9%, ensuring compliance with European Union ownership rules through a separate shareholding framework.
As part of the agreement, Apollo has pledged to retain EasyJet’s headquarters in both the UK and the European Union, aligning with the airline’s current growth strategy. The private equity firm has identified significant long-term potential within EasyJet’s aviation network across Europe and the UK, underscoring its commitment to support the airline’s expansion efforts.
The board of EasyJet expressed that the offer presents shareholders with immediate and attractive value, while also acknowledging the airline’s robust position and promising future. This announcement follows a period of volatility for EasyJet’s shares, which initially dropped sharply after Castlelake’s withdrawal from the bidding process. However, they bounced back as investors reacted positively to the confirmed deal with Apollo.