In a significant move within the aviation industry, US private equity firm Apollo has put forward a £5.7 billion all-cash offer to acquire easyJet, surpassing a competing bid presented by Castlelake. The offer values easyJet at £7.15 per share, notably higher than Castlelake’s proposal of £6.90 per share. As a result, easyJet’s board has expressed its readiness to endorse Apollo’s bid to its shareholders, emphasizing the superior financial terms of the deal.
Apollo’s proposal includes provisions for existing shareholders to maintain a stake in the airline post-acquisition. Additionally, the firm has committed to backing easyJet’s current management and supporting its ongoing business strategy and brand identity. This strategic approach aims to ensure stability and growth for the airline while fostering continued investments in key areas.
The private equity firm has outlined its intentions to invest in the modernization of easyJet’s fleet, enhance customer services, expand loyalty programs, and develop the airline’s holiday business segment. These efforts are aligned with Apollo’s commitment to adhering to EU regulations regarding foreign ownership of airlines, ensuring compliance throughout the acquisition process.
Apollo faces a deadline of August 7 to formalize its offer. In the meantime, Castlelake is evaluating its position in light of Apollo’s more attractive bid. The outcome of this acquisition battle could have significant implications for easyJet’s future operations and strategic direction.