EasyJet formally accepted a takeover offer from Apollo Global Management, a US-based private equity firm, valuing the airline at £5.7bn. The transaction was finalized at £7.15 per share, a price Apollo had previously proposed. The agreement came after Castlelake, which had been competing to acquire the airline, decided to exit the bidding process rather than escalate its offer further.
The ownership structure of the combined entity includes provisions for various shareholder classes. EasyJet’s founder, Stelios Haji-Ioannou, and his family will continue holding their shares in the newly constituted company. Other shareholders have been given the option to either sell their stakes or maintain their positions, with individual holdings capped at 49.9%. An “EU Trust” entity will hold up to 5% of shares, apparently designed to ensure compliance with European Union regulations governing foreign ownership of airlines, with Apollo’s stake similarly limited to 49.9%.
The transaction is scheduled to close by the end of March 2027. Apollo has committed to preserving easyJet’s existing headquarters locations in the United Kingdom and European Union. Company leadership indicated that the new ownership would support the airline’s current strategic direction and provide resources for sustainable expansion.
Executives across both organizations expressed confidence in the partnership. Apollo’s European private equity leader emphasized the firm’s appreciation for easyJet’s market position and brand strength, while pledging support for the airline’s connectivity objectives and workforce. EasyJet’s chair noted that while the company remains confident in its independent prospects, the offer provides shareholders with immediate and attractive returns. The chief executive welcomed Apollo’s aviation sector expertise as a potential advantage for executing growth initiatives.
Stock market reaction was mixed initially, with shares declining 3% following news of Castlelake’s withdrawal before recovering to close up 3% for the trading day.
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