Apollo, a prominent US private equity firm, has made a significant move by launching a £5.7 billion takeover bid for easyJet. This offer has gained the favor of easyJet’s board, which has decided to support Apollo’s proposal over a competing bid from Castlelake. Apollo’s all-cash offer is valued at £7.15 per share, surpassing Castlelake’s offer of £6.90 per share, making it a more lucrative option for the airline.
The board of easyJet has expressed its readiness to recommend Apollo’s bid to its shareholders, emphasizing the superior financial terms presented by the firm. In addition to the attractive financial proposition, Apollo plans to allow current shareholders to maintain their investment in the company after the acquisition is finalized. The firm has also committed to supporting easyJet’s existing management, business strategy, and brand identity.
In its proposal, Apollo has outlined intentions to continue investing in several key areas of easyJet’s operations. These include modernizing the airline’s fleet, enhancing customer services, expanding loyalty programs, and further developing easyJet’s holiday business. Furthermore, Apollo has assured compliance with EU foreign ownership regulations, which is crucial for the airline’s operations in Europe.
Apollo has been given a deadline of August 7 to submit a formal offer, while Castlelake is reportedly reassessing its options in light of this new, more competitive bid. The situation highlights the competitive landscape in the airline industry and the strategic interest private equity firms have in investing in well-established airlines like easyJet.
