Apollo, a private equity firm based in the United States, has put forward a £5.7 billion bid to take over easyJet, steering the airline’s board to favor this proposal over a competing bid from Castlelake. With an all-cash offer that values easyJet at £7.15 per share, Apollo’s bid surpasses Castlelake’s offer of £6.90 per share. This significant difference in valuation has led the easyJet board to express its readiness to recommend Apollo’s proposal to its shareholders.
In deciding to advocate for Apollo’s offer, easyJet’s board highlighted the stronger financial terms that accompany the proposal. Apollo has also expressed its intention to allow current shareholders to maintain an investment in the airline post-acquisition. Moreover, the firm has assured its support for easyJet’s existing management team, its business strategy, and the airline’s brand identity.
Apollo’s plans for easyJet include continued investment in areas critical to the airline’s growth and competitiveness. The firm aims to focus on fleet modernization, enhancing customer services, expanding loyalty programs, and developing the airline’s holiday business. These initiatives are designed to align with easyJet’s strategic goals while ensuring compliance with European Union foreign ownership regulations.
The timeline for Apollo to formalize its offer extends until August 7, providing a window for Castlelake to evaluate its options in response to this more attractive bid. As Castlelake reconsiders its strategy, the focus remains on how it might adjust its offer or approach in light of Apollo’s aggressive move.