EasyJet has officially accepted a £5.7 billion takeover offer from Apollo Global Management, marking a significant shift in the airline’s ownership structure. The decision comes after rival bidder Castlelake opted not to pursue its acquisition efforts, clearing the way for Apollo’s proposal to proceed at £7.15 per share.
Details of the Acquisition
The agreement was confirmed on Thursday, just a day before a deadline for final offers was set to expire. Apollo’s bid was initially presented last month, following easyJet’s recommendation for a sale to Castlelake. However, Castlelake’s withdrawal from the bidding process allowed Apollo to solidify its position as the preferred buyer.
Under the terms of the deal, easyJet’s founder, Stelios Haji-Ioannou, along with his family, will maintain their shareholding in the newly structured company. Shareholders will also have the option to sell or transfer up to 49.9% of their shares as part of the transaction.
Compliance with EU Regulations
To adhere to the European Union’s foreign ownership regulations for airlines, the acquisition includes an “EU Trust” shareholding group that will retain up to 5%. This arrangement ensures that Apollo’s ownership is capped at 49.9%, allowing the airline to remain compliant while facilitating the transaction.
The takeover is anticipated to conclude by the end of March 2027. Apollo has committed to preserving easyJet’s headquarters in the UK and EU, indicating a commitment to the airline’s existing strategic direction while also aiming to foster long-term, sustainable growth.
Statements from Leadership
Alex van Hoek, Apollo’s European private equity lead, expressed confidence in easyJet’s market position, stating, “EasyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand.” He emphasised Apollo’s support for the airline’s efforts to enhance travel connectivity across Europe and the UK.
Stephen Hester, the chairman of easyJet, remarked on the thorough evaluation of Apollo’s proposal, stating, “While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders.”
Kenton Jarvis, the airline’s chief executive, welcomed Apollo’s commitment, highlighting their experience in the aviation sector as a beneficial partnership to help accelerate easyJet’s growth and enhance customer service.
Following the announcement, easyJet’s share price, which had previously dipped 10% due to Castlelake’s exit, saw a recovery of 3% by the end of the trading day.
Why it Matters
This acquisition represents a pivotal moment for easyJet, as it transitions to new ownership that is poised to support its strategic ambitions in a competitive market. With Apollo’s backing, easyJet aims to reinforce its position as a leading low-cost carrier in Europe, while also ensuring compliance with regulatory frameworks. This change not only impacts the airline’s operational future but also signals to investors and stakeholders the potential for enhanced value and growth in the years to come.
