EasyJet announced acceptance of a takeover bid from Apollo Global Management, valuing the budget airline at £5.7bn. The transaction will proceed at £7.15 per share, a price Apollo proposed last month. The deal became formal on Thursday, one day before a deadline for final offers, after rival bidder Castlelake withdrew from its acquisition attempt and chose not to engage in further competitive bidding.
Under the ownership structure, founder Stelios Haji-Ioannou and his family will continue holding shares in the restructured company. Existing shareholders have the option to either sell their stakes or maintain their positions, with a maximum threshold of 49.9%. An “EU Trust” shareholding vehicle will hold up to 5%, an arrangement apparently intended to satisfy European Union regulations governing foreign ownership of airlines. Apollo’s stake is capped at 49.9%.
Apollo has pledged to maintain easyJet’s headquarters in the UK and EU, while indicating support for the airline’s current strategic direction and growth objectives. Company leadership expressed confidence in the acquisition as a path forward. EasyJet’s board determined that the offer appropriately valued the business while delivering assured returns to shareholders. The airline’s management indicated that Apollo’s aviation sector expertise would benefit future expansion efforts.
The transaction is anticipated to conclude by the end of March 2027. Following Castlelake’s withdrawal announcement, easyJet’s share price initially declined 10% before recovering to finish the day up 3%.
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