Apollo, a private equity firm based in the United States, has submitted a takeover bid for easyJet, estimated at £5.7 billion. This proposal has gained favor with the airline’s board over a competing offer from Castlelake. Apollo’s all-cash bid is valued at £7.15 per share, surpassing Castlelake’s offer of £6.90 per share.
In light of the more attractive financial terms, easyJet’s board has expressed its willingness to recommend Apollo’s proposal to its shareholders. Apollo has not only promised a stronger financial package but also intends to allow existing shareholders to maintain an investment in the airline post-acquisition. Additionally, the firm has assured its commitment to supporting easyJet’s current management and business strategy, as well as preserving the airline’s brand identity.
Further strengthening its bid, Apollo plans to continue investing in key areas such as fleet modernization and customer service enhancements. The firm also aims to develop loyalty programs and expand easyJet’s holiday business, all while ensuring compliance with EU foreign ownership regulations.
With a deadline of August 7 to formalize its offer, Apollo’s proposal has put pressure on Castlelake, which is currently reassessing its position following the more substantial bid. The competition between the two firms highlights easyJet’s strategic importance and the value placed on its future growth potential.