easyJet has formally agreed to a £5.7bn take-over by US private equity firm Apollo Global Management, according to The Guardian.
The airline confirmed on Thursday that it had accepted Apollo’s firm offer after rival bidder Castlelake withdrew from the race, ending the prospect of a bidding war.
The deal values easyJet at £7.15 a share, based on an offer Apollo submitted last month. The airline had previously recommended a £5bn take-over proposal from Castlelake before Apollo entered the contest with a higher bid.
The agreement was announced 24 hours before a deadline for the two bidders to submit final offers, with Castlelake opting not to increase its proposal.
Under the terms of the take-over, easyJet founder Stelios Haji-Ioannou and his family will retain their stake under the new ownership structure. Other shareholders will be able to sell or transfer their holdings, subject to a maximum of 49.9%.
An “EU Trust” shareholder group will retain a stake of up to 5%, in a structure intended to help the airline comply with EU rules governing foreign ownership. Apollo’s holding will also be capped at 49.9%.
The take-over is expected to be completed by the end of March 2027.
Apollo has committed to retaining easyJet’s UK and EU headquarters and has said it intends to support the airline’s existing strategy and plans for long-term, sustainable growth. (£1.00 = €1.17 at time of publication).
