Apollo, a private equity firm based in the United States, has put forward a £5.7 billion bid to acquire the UK airline easyJet. This proposal has gained favor with easyJet’s board, which has decided to endorse Apollo’s offer over a competing bid from Castlelake. Apollo’s bid is set at £7.15 per share, presenting a more attractive financial option than Castlelake’s offer of £6.90 per share.
The board of easyJet expressed its readiness to recommend Apollo’s proposition to its shareholders, highlighting the superior financial terms presented. In addition to the financial aspects, Apollo has indicated its intention to allow current easyJet shareholders to maintain a stake in the company post-acquisition. The firm has also committed to backing easyJet’s existing management team, business strategy, and brand identity.
In its plans, Apollo envisions continued investments in several key areas of easyJet’s operations. These include the modernization of the airline’s fleet, enhancement of customer services, and development of loyalty programs. Additionally, Apollo aims to support the growth of easyJet’s holiday business while ensuring compliance with EU regulations regarding foreign ownership.
The timeline for formalizing this offer is set with Apollo having until August 7 to submit a definitive proposal. Meanwhile, Castlelake is evaluating its strategic options in light of the more lucrative bid put forth by Apollo. The decision by easyJet’s board to lean towards Apollo’s offer underscores the competitive nature of this acquisition effort.