EasyJet Accepts Apollo Management's £5.7bn Takeover Proposal
No-frills airline EasyJet has agreed in principle to a £5.7 billion takeover offer from US private equity firm Apollo Management.
This bid surpasses a previous proposal from US investment firm Castlelake, which EasyJet had also agreed to in principle over the weekend.
Company Overview and Offer Details
EasyJet is one of Europe's largest airlines, employing over 19,000 people and operating approximately 1,200 routes across 35 European countries. The Luton-based carrier stated that shareholders would receive £7.15 per share under the Apollo proposal. The company intends to accept this offer as it represents
a superior outcomefor investors compared to the £6.90 per share proposal from Castlelake.
EasyJet's board has indicated it is
no longer mindedto accept Castlelake's offer.
Current Status and Deadlines
It is important to note that this statement does not confirm a finalized deal. Apollo has been given a deadline of 17:00 on 7 August to either submit a firm bid for EasyJet or withdraw. Castlelake's deadline to make a firm offer is 3 August.
Background on Bids and Regulatory Considerations
Apollo's proposal follows a series of offers from Castlelake, which EasyJet initially rejected, accusing the US firm of attempting to acquire the airline
on the cheap.
However, on Sunday, EasyJet announced it had reached an agreement in principle with Castlelake regarding a potential takeover valued at approximately £5.2 billion.
One significant regulatory challenge for any EasyJet takeover is compliance with European Union regulations, which require the airline to be majority-owned by EU citizens.
Castlelake proposed partnering with two EU nationals, businessmen Peter Bellew and Mark Breen, who would own an EU-based company holding majority control of the airline.
