Apollo, a prominent US private equity firm, has submitted a £5.7 billion bid to acquire easyJet, putting the airline’s board in favor of this offer over a competing proposal from Castlelake. The all-cash offer from Apollo values easyJet at £7.15 per share, surpassing the £6.90 per share bid from Castlelake.
In light of Apollo’s more attractive financial terms, easyJet’s board has expressed readiness to recommend the proposal to its shareholders. This endorsement is bolstered by Apollo’s commitment to allow current shareholders to maintain their investment in the airline post-acquisition, as well as its support for easyJet’s existing management, business strategy, and brand identity.
Apollo has outlined plans to continue investing in various aspects of the airline’s operations, including fleet modernization, enhancing customer services, and expanding loyalty programs. Additionally, the firm is committed to adhering to EU regulations regarding foreign ownership while also investing in easyJet’s holiday business.
The deadline for Apollo to formalize its offer is set for August 7, providing a timeframe for further developments. Meanwhile, Castlelake is assessing its options in the face of Apollo’s higher bid, which has shifted the dynamics of the takeover battle.