Apollo agrees £5.7bn all-cash takeover of easyJet

London, United Kingdom. EasyJet’s board has agreed to the terms of a proposed £5.7 billion all-cash takeover by US investment firm Apollo, ending a bidding contest for one of Europe’s largest low-cost carriers. Founder Sir Stelios Haji-Ioannou and his family will remain significant shareholders under the planned ownership structure.

Competing bid withdrawn

The British airline confirmed on Thursday that Apollo’s offer values the company at about $7.7 billion.

The agreement followed rival US investment group Castlelake’s announcement that it would not increase its offer of just over £5 billion. Under British takeover rules, both firms had until Friday to submit revised proposals.

Castlelake said that, after careful consideration, it did not intend to make an improved offer for easyJet, clearing the way for Apollo’s higher bid.

Ownership requirements

EasyJet had indicated last month that Apollo’s preliminary £5.7 billion proposal offered a better outcome for shareholders than the competing approach.

Apollo will not own the entire airline. British and European Union aviation rules require carriers to remain majority-owned and effectively controlled by qualifying UK or European nationals.

The takeover will therefore use an ownership structure intended to allow easyJet to continue meeting those requirements after its removal from the London Stock Exchange.

Founder’s response

Sir Stelios welcomed Apollo’s involvement and confirmed that his family would retain shares in the privately owned airline following the delisting.

“I welcome Apollo’s strategic intentions for easyJet, which aim to create new growth prospects for the company,” he said.

He described Apollo’s investment as a vote of confidence in the airline and in the wider business model developed around the easy name.