EasyJet announced the formal acceptance of a takeover offer from Apollo Global Management, a US-based private equity firm, valuing the airline at £5.7bn. The agreement was reached after rival bidder Castlelake withdrew from the acquisition process, deciding not to engage in competitive bidding. Apollo had submitted its offer at £7.15 per share in the previous month, following an earlier recommendation by easyJet’s board for a sale to Castlelake.
Under the acquisition structure, easyJet’s founder Stelios Haji-Ioannou and his family will maintain their shareholding in the company. Shareholders have been given the option to either sell their stakes or transfer them, with a maximum cap of 49.9% available for transfer. An “EU Trust” shareholding group will hold up to 5% of the company, a mechanism apparently designed to ensure compliance with European Union foreign ownership regulations for airlines, while Apollo’s stake is limited to 49.9%.
Apollo has provided commitments regarding the airline’s operations, pledging to maintain easyJet’s headquarters in the UK and EU regions. The firm has also indicated its intention to support the airline’s existing strategic direction and facilitate long-term sustainable expansion. Company leadership, including chair Stephen Hester and chief executive Kenton Jarvis, expressed confidence in Apollo’s aviation sector experience and stated that the offer reflects the quality and value of the business.
The transaction is anticipated to reach completion by the end of March 2027. Following the announcement of Castlelake’s withdrawal from the bidding process, easyJet’s share price experienced volatility, initially declining 10% before recovering to close 3% higher than the opening level on the day of the announcement.
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