In a significant development, EasyJet has confirmed a £5.7 billion acquisition deal with U.S.-based Apollo Global Management, after Castlelake, a rival bidder, exited the competition. Apollo has agreed to purchase EasyJet shares at a price of £7.15 each, with the transaction anticipated to close by March 2027 pending necessary regulatory approvals.
The bidding war originally saw EasyJet leaning towards a potential sale to Castlelake. However, Apollo’s enhanced offer led to its eventual victory. Castlelake chose not to submit a final bid, paving the way for Apollo’s successful acquisition. Under the new ownership, EasyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their current shareholding. Apollo’s stake will be limited to 49.9%, with a distinct shareholding structure in place to meet European Union ownership criteria.
Apollo Global Management has expressed its commitment to preserving EasyJet’s operational bases in the UK and EU, while also backing the airline’s existing growth strategies. The private equity firm recognizes significant long-term potential within EasyJet’s established European and UK aviation networks.
EasyJet’s board has welcomed the Apollo offer, citing it as providing immediate and attractive value for shareholders. The board also noted the proposal’s acknowledgment of EasyJet’s robust position and future growth prospects. The confirmation of Apollo’s deal comes after EasyJet experienced a sharp decline in share prices following Castlelake’s withdrawal, which was subsequently offset by investor enthusiasm in response to the Apollo agreement.