The board of easyJet announced on Friday that it was prepared to recommend a potential all-cash offer from American private equity firm Apollo valued at £5.7bn, or £7.15 per share. This move represented a reversal from earlier in the week, when the airline’s leadership had agreed in principle to accept a competing proposal from Castlelake worth £5.5bn at £6.90 per share after that firm had raised its bid multiple times.
The Apollo offer includes provisions allowing existing shareholders to maintain their investment stake following any delisting, rather than being forced to sell their holdings. The arrangement preserves an existing brand licensing agreement with easyJet founder Stelios Haji-Ioannou, who retains more than 15% ownership along with his family and would receive approximately £855m if he chose to sell his stake under Apollo’s proposal. The private equity firm indicated it intended to retain easyJet’s current management team and strategy focused on the low-cost carrier model, including fleet modernization and expansion of ancillary services.
Apollo has until 7 August to formalize its offer. The company acknowledged that EU ownership regulations require European airlines to maintain majority ownership by European investors, a requirement that remains applicable to easyJet post-Brexit. Apollo stated it would take necessary measures to comply with such rules and regulatory conditions. Castlelake responded that it would consider its available options and announce further developments at an appropriate time.
Market response to the bidding competition was positive, with easyJet’s shares rising 14% on Friday morning. Apollo has established a track record of aviation investments, including positions in Sun Country Airlines, Aeroméxico, Atlas Air, and Swissport, as well as financing arrangements with Air France-KLM and Scandinavian Airlines during previous periods.
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