Apollo, a US-based private equity firm, has made a significant move to acquire easyJet with a £5.7 billion all-cash offer. This bid values the airline at £7.15 per share, surpassing a competing proposal from Castlelake, which offered £6.90 per share. The easyJet board has expressed its intention to endorse Apollo’s offer to shareholders, citing the stronger financial terms as a key factor.
The proposed acquisition by Apollo includes provisions that allow existing easyJet shareholders to maintain an investment in the airline. Additionally, Apollo has committed to supporting easyJet’s current management and business strategy while preserving the brand’s identity. This approach aims to reassure stakeholders about the continuity and future direction of the airline under new ownership.
Apollo has outlined plans to continue investing in areas critical to easyJet’s operations, such as fleet modernization, customer service enhancements, loyalty programs, and the airline’s holiday business. These investments are designed to ensure the airline’s competitive edge and growth while adhering to European Union regulations concerning foreign ownership.
With a deadline set for August 7, Apollo must submit its formal offer by this date to proceed further. Meanwhile, Castlelake, whose bid was the initial front-runner, is currently assessing its options in light of Apollo’s superior offer. The outcome of this bidding war could significantly shape the future landscape of easyJet and its operations.