Apollo Makes Winning Bid for EasyJet, Valuing Airline at $5.7 Billion
US investment firm's offer surpasses rival bid, signaling potential exit from London Stock Exchange.
EasyJet has recommended that its shareholders accept a takeover bid valuing the budget airline at £5.7 billion from U.S. investment giant Apollo. This revised offer surpasses a previous bid from Castlelake earlier in the week and signals a potential delisting from the London market.
Apollo's proposed cash offer of £7.15 per share represents a significant premium, an 81 percent increase compared to EasyJet's closing price of £3.94 before Castlelake's initial offer. The airline had initially agreed in principle to Castlelake's £5.5 billion bid on Sunday, but Apollo's improved offer on Wednesday led EasyJet to recommend its investors accept the latter.
Previously, EasyJet had rejected four offers from Castlelake, with its leadership characterizing those proposals as "highly opportunistic" and an attempt to secure the deal "on the cheap." The latest development continues a trend of foreign buyers acquiring London-listed companies, with other targets including Tate & Lyle, Beazley, Schroders, and the owner of William Hill.
The completion of any takeover bid is contingent on the approval of EasyJet founder Sir Stelios Haji-Ioannou and his family, who collectively hold a 15.3 percent stake in the company. While no public comment has been made by the Haji-Ioannou family, sources indicated last month that an "eyewatering" offer would likely be accepted. The family's decision is seen as crucial, as a substantial price would be required to persuade them to sell their stake.