Airline says it has accepted offer from Apollo Global Management after rival bidder Castlelake walks away<\/p>\n
EasyJet has formally agreed to a \u00a35.7bn takeover from US private equity firm Apollo Global Management.<\/p>\n
The airline announced it had accepted a firm offer on Thursday after a rival bidder, Castlelake, said it would no longer pursue its attempted acquisition.<\/p>\n
The decision means the deal will go through at \u00a37.15 a share, which Apollo tabled last month after the easyJet had initially recommended a sale to Castlelake. The formal agreement came 24 hours before a deadline set for both parties to submit a final offer, but Castlelake declined to enter a bidding war.<\/p>\n
Under the agreement, the airline\u2019s founder, Stelios Haji-Ioannou, and his family will retain their shareholding in the new ownership structure. Shareholders have been offered the opportunity to either sell or transfer, up to a maximum of 49.9%.<\/p>\n
An \u201cEU Trust\u201d shareholding group will retain up to 5%, a structure that appears designed to comply with the European Union\u2019s foreign ownership rules for airlines, with Apollo limited to 49.9%.<\/p>\n
The takeover is expected to complete by the end of March 2027.<\/p>\n
Apollo, which has committed to retaining easyJet\u2019s UK and EU head offices, has indicated it would back the airline\u2019s current strategy and support it in generating long-term, sustainable growth.<\/p>\n
Alex van Hoek, the US firm\u2019s European private equity lead, said: \u201cEasyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand. Apollo strongly supports easyJet\u2019s commitment to enhancing the connectivity of travellers throughout Europe and the UK and the important role that its employees play in serving customers.\u201d<\/p>\n
Stephen Hester, the airline\u2019s chair, said: \u201cThe easyJet board has carefully evaluated the proposal from Apollo alongside easyJet\u2019s standalone prospects. 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.\u201d<\/p>\n
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Kenton Jarvis, easyJet\u2019s chief executive, said: \u201cWe welcome Apollo\u2019s commitment to our business and our people, and believe that its experience in the aviation sector makes it a strong partner for easyJet as we accelerate our growth plans and continue to deliver great value and service for our customers.\u201d<\/p>\n
EasyJet\u2019s share price, which dropped 10% on news of Castlelake\u2019s exit, rebounded to 3% up from the start of the day.<\/p>\n