Apollo, a private equity firm based in the United States, has made a substantial move in the airline industry by proposing a £5.7 billion acquisition of easyJet. This offer has received the backing of easyJet’s board, which favors Apollo’s proposal over a competing bid from Castlelake. Apollo’s all-cash offer values easyJet at £7.15 per share, surpassing the £6.90 per share bid put forward by Castlelake.
The easyJet board has expressed its readiness to recommend Apollo’s offer to shareholders, highlighting the stronger financial terms presented by Apollo. As part of the proposed deal, Apollo has assured that it will allow current shareholders to maintain their investment in the airline post-acquisition. Furthermore, the firm has committed to supporting easyJet’s current management team, business strategy, and brand identity.
Apollo’s plans for easyJet include continued investments in several key areas. These include modernizing the airline’s fleet, enhancing customer services, expanding loyalty programs, and growing its holiday business. The firm has also pledged to adhere to EU foreign ownership regulations, ensuring compliance as it moves forward with its acquisition plans.
The deadline for Apollo to submit a formal offer is set for August 7. Meanwhile, Castlelake is assessing its options in light of Apollo’s higher competing bid. The outcome of this acquisition battle will determine the future leadership and strategic direction of easyJet, a major player in the airline industry.