Apollo, a prominent private equity firm based in the United States, has put forth a £5.7 billion proposal to acquire easyJet, a move that has garnered the backing of the airline’s board over a competing bid from Castlelake. Apollo’s offer is entirely in cash and values easyJet at £7.15 per share, a figure that surpasses Castlelake’s offer of £6.90 per share.
The board of easyJet has expressed its readiness to recommend Apollo’s offer to its shareholders, highlighting the more robust financial terms presented by Apollo. In an effort to reassure stakeholders, Apollo has announced its intention to allow current shareholders to maintain an investment stake in easyJet post-acquisition. Additionally, the firm has committed to supporting the existing management team, business strategy, and brand identity of the airline.
Apollo has outlined plans to invest in various key areas of easyJet’s operations. These include modernizing the airline’s fleet, enhancing customer service, expanding loyalty programs, and bolstering the airline’s holiday business segment, all while ensuring compliance with European Union regulations on foreign ownership.
With a deadline set for August 7, Apollo must submit its formal offer by that date. Meanwhile, Castlelake, facing a higher bid from Apollo, is currently reassessing its strategic options in response to the ongoing competitive bidding process.