Apollo, a prominent private equity firm from the United States, has made a substantial takeover bid for the airline easyJet, valuing the company at £5.7 billion. This bid has surpassed a competing offer from Castlelake, with Apollo proposing an all-cash price of £7.15 per share, compared to Castlelake’s £6.90 per share offer. The board of easyJet has indicated its preference for Apollo’s proposal, highlighting the superior financial terms presented by the firm.
The easyJet board has expressed its readiness to recommend Apollo’s bid to its shareholders. One of the key attractions of Apollo’s offer is the provision for existing shareholders to maintain a stake in the airline post-acquisition. Additionally, Apollo has committed to upholding easyJet’s current management team and business strategies, as well as preserving its brand identity.
Under Apollo’s leadership, there is a plan to continue investment in several critical areas for easyJet. These include fleet modernization, enhancing customer services, expanding loyalty programs, and developing the airline’s holiday business. Apollo has also assured compliance with EU regulations concerning foreign ownership, which is crucial for the airline’s operations.
As the process advances, Apollo has a deadline of August 7 to formally submit its offer. Meanwhile, Castlelake is evaluating its next moves in light of Apollo’s higher bid.