EasyJet (LON: EZJ) is set to be acquired by US private equity group Apollo for £5.7 billion after rival bidder Castlelake withdrew from the takeover battle.
The airline has accepted Apollo’s offer of £7.15 per share, with the deal also receiving support from major shareholders, including founder Sir Stelios Haji-Ioannou.
Castlelake confirmed it would not submit a revised proposal after EasyJet extended the deadline for a potential counterbid, leaving Apollo as the sole remaining bidder.
The decision brings an end to a prolonged bidding contest for the London-listed budget airline. Castlelake initially approached EasyJet in May after rising fuel prices and concerns surrounding the Iran conflict pushed the company’s shares below £4.
After several earlier proposals were rejected, Castlelake agreed a deal valuing EasyJet at around £5.2 billion. However, that agreement was displaced when Apollo returned with the higher £5.7 billion offer.
The takeover interest has pushed EasyJet shares to their highest level since the pandemic, although the stock remains more than 50% below its peak reached over a decade ago.
Sir Stelios founded EasyJet in 1995 and listed the airline on the London Stock Exchange in 2000. He and his family continue to hold a stake of approximately 15%.
Completion of the Apollo transaction would result in EasyJet leaving the London stock market and becoming a privately owned company.
