The board of easyJet announced on Friday that it was prepared to recommend a potential takeover offer from US private equity firm Apollo valued at £5.7bn, or £7.15 per share, to the airline’s shareholders. This marked a reversal from earlier in the week, when the board had signaled its intention to accept a competing offer from Castlelake at £6.90 per share, worth approximately £5.5bn. The shift to Apollo’s proposal reflects the board’s assessment that the higher valuation better serves shareholder interests.
Apollo’s bid includes provisions allowing existing shareholders to maintain their stakes after the airline is delisted, rather than being forced to exit their positions. The company indicated it would continue an existing brand licensing agreement with founder Stelios Haji-Ioannou, who owns more than 15% of easyJet along with his family members. Should Haji-Ioannou sell his shareholding under Apollo’s offer, he would receive approximately £855m. The founder has not publicly commented on the takeover attempts.
Apollo stated it intends to preserve easyJet’s current operational strategy and management team, indicating plans to support fleet modernization, expand ancillary services and loyalty programs, and develop the airline’s holiday offerings. The company emphasized the value it places on retaining key personnel across the easyJet organization. Apollo has committed to meeting European Union regulations governing foreign ownership of airlines, which require that majority stakes remain with investors from the region—a requirement that continues to apply to easyJet following Brexit.
The US private equity firm has until 7 August to formalize its offer. Castlelake, which remains in the bidding process, announced it would review its options and provide further information as appropriate. The rival bidder had previously partnered with two aviation industry figures to address EU ownership requirements. EasyJet’s share price rose 14% on Friday following the announcement of Apollo’s proposal, reflecting investor enthusiasm for the competitive bid situation.
Apollo has an established track record in aviation investments, having previously financed Virgin Atlantic’s Heathrow landing slots, invested in Sun Country Airlines and Aeroméxico, and provided substantial financial support to carriers including Air France-KLM and Scandinavian Airlines during restructuring efforts.
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