easyJet Agrees £5.7bn Takeover Deal with Apollo

easyJet has agreed to a £5.7 billion takeover by Apollo Global Management, bringing months of speculation over the future ownership of the airline closer to an end.

The deal values easyJet at 715p per share and has been unanimously recommended by the airline’s board. easyJet founder Sir Stelios Haji-Ioannou has also confirmed his support for the proposed acquisition.

Apollo emerged as the preferred bidder after rival investment firm Castlelake withdrew from the takeover process. Castlelake had previously made several approaches for easyJet before Apollo entered the race with a higher offer.

Under Apollo’s ownership, easyJet would become a privately held company. Apollo says it plans to support the airline’s commercial growth, including further expansion of the easyJet holidays business.

One of the biggest issues still surrounding the deal is easyJet’s European ownership structure. EU rules require airlines operating within the bloc to remain majority owned and controlled by European interests.

The proposed structure would see Apollo hold no more than 49.9%, while existing shareholders and an EU management trust would retain the remaining interest to help protect easyJet’s European operating rights.

The UK Civil Aviation Authority has also been involved in discussions around the proposed structure.

easyJet’s board said it believes the offer provides attractive value for shareholders while recognising the strength of the airline and its future growth opportunities.

The deal still needs to complete the required shareholder and regulatory process before the takeover can be finalised.