Low-cost European airline EasyJet has announced that it has agreed in principle to a £5.7 billion takeover proposal from US investment firm Apollo Management, replacing an earlier recommended offer from Castlelake.
The new proposal values EasyJet shares at £7.15 per share, exceeding Castlelake’s previous offer of £6.90 per share, which valued the airline at approximately £5.2 billion. EasyJet’s board said the Apollo proposal offers a better financial outcome for shareholders and has therefore withdrawn its support for Castlelake’s bid.
According to EasyJet, Apollo’s improved proposal represents the strongest offer currently on the table. The airline stated that its board now intends to recommend Apollo’s bid because it provides greater value to investors.
The company confirmed that it is “no longer minded” to support Castlelake’s proposal following Apollo’s higher valuation. While the agreement marks a significant step toward a potential acquisition, the takeover has not yet been finalized.
Apollo Management has until 5:00 PM on 7 August to submit a formal takeover offer or withdraw its interest under UK takeover regulations.
Meanwhile, Castlelake faces an earlier deadline of 3 August to either submit a firm offer or abandon its pursuit of the airline. Until either bidder submits a binding proposal, there is no guarantee that a takeover will proceed. nApollo’s latest proposal comes just days after EasyJet had reached an agreement in principle with Castlelake.
Initially, EasyJet rejected several approaches from Castlelake, arguing that the US investment company was attempting to acquire the airline at an undervalued price. However, after Castlelake improved its offer to approximately £5.2 billion, the airline agreed to continue discussions.
Apollo’s superior bid has now overtaken that proposal, prompting EasyJet’s board to change its recommendation.
Headquartered in Luton, England, EasyJet is one of Europe’s leading low-cost airlines. The carrier operates approximately 1,200 routes across 35 European countries and employs more than 19,000 people.
The airline serves millions of passengers annually and has built a strong presence across major European travel markets through its extensive short-haul network.
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