The board of easyJet announced on Friday that it would recommend a potential all-cash takeover offer from Apollo valued at £5.7bn, or £7.15 per share. The move represents a significant development in an emerging bidding competition for the low-cost carrier, with the board reversing its earlier position on an alternative proposal.
Earlier in the week, easyJet’s board had indicated willingness to accept a bid from Castlelake, another US private equity firm, at £6.90 per share, valuing the company at approximately £5.5bn. However, the board determined that Apollo’s revised offer at a higher price warranted a change in recommendation. Castlelake stated on Friday afternoon that it would evaluate its next steps following the development.
Apollo’s offer includes provisions allowing current shareholders to maintain their stake in the company rather than being required to exit at the delisting. The arrangement preserves an existing brand licence agreement with easyJet founder Stelios Haji-Ioannou, who retains ownership of over 15% of the airline alongside family members. Under the proposed transaction, Haji-Ioannou would be eligible to receive approximately £855m should he choose to sell his holding.
The US private equity firm has committed to maintaining easyJet’s existing strategy and management structure, signaling plans to support the airline’s fleet modernization efforts and expansion of ancillary services and holiday offerings. Apollo has also pledged to comply with European Union ownership regulations, which mandate that European airlines remain majority-owned by regional investors. The firm has until August 7 to formalize its offer. Stock market response was positive, with easyJet shares rising 14% following the announcement.
Apollo maintains a significant presence in aviation financing and investment, with its European headquarters located in London. The firm has previously provided substantial financial support to airlines including Virgin Atlantic, Air France-KLM, and Scandinavian Airlines, while holding investments in carriers such as Aeroméxico and Sun Country Airlines.
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