EasyJet announced acceptance of a firm takeover offer from Apollo Global Management, a US-based private equity firm, valued at £5.7bn. The agreement came after rival bidder Castlelake withdrew from pursuing its acquisition of the low-cost airline, deciding not to engage in further bidding.
Apollo’s offer of £7.15 per share was tabled last month and became the airline’s recommended bid after EasyJet had initially supported Castlelake’s proposal. The formal agreement was reached a day before a deadline for final offers from both parties. Under the transaction structure, EasyJet’s founder Stelios Haji-Ioannou and his family will maintain their shareholding position in the company.
Shareholders will have the option to sell or retain their stakes up to a maximum of 49.9%, while an “EU Trust” entity will hold up to 5% of shares. This structure appears designed to satisfy European Union regulations governing foreign ownership of airlines, with Apollo’s stake capped at 49.9%. The takeover is projected to complete by the end of March 2027.
Apollo has committed to preserving EasyJet’s existing UK and EU headquarters and indicated support for the airline’s strategic direction and long-term growth objectives. Company leadership expressed confidence in the partnership, with executives highlighting Apollo’s aviation sector experience as a valuable asset for accelerating expansion plans. Following Castlelake’s withdrawal announcement, EasyJet’s share price initially declined 10% but subsequently recovered to finish 3% higher from the day’s opening level.
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