UK airline easyJet has officially agreed to a massive £5.7 billion takeover by US private equity giant Apollo Global Management. The budget airline announced it had accepted the firm offer on Thursday after rival bidder Castlelake pulled out of the running, refusing to spark a high-stakes bidding war.
Deal Terms and Shareholder Options
Under the agreed terms, the deal values easyJet at £7.15 per share. Apollo tabled the winning bid last month after easyJet initially recommended a sale to Castlelake. The formal agreement was struck just 24 hours before a deadline for both parties to submit final offers.
Under the new ownership structure, easyJet founder Sir Stelios Haji-Ioannou and his family will retain their existing shareholding in the airline. Current shareholders have been given the choice to either sell or transfer their holdings, up to a maximum limit of 49.9%.
EU Compliance and Operations
To ensure full compliance with European Union foreign ownership regulations for airlines, an “EU Trust” shareholding group will hold up to 5% of the business, while Apollo's overall stake will be capped at 49.9%.
Regarding its operations, Apollo has pledged to retain easyJet's UK and EU head offices while fully backing its current long-term growth strategy. The entire takeover process is expected to officially close by the end of March 2027.
Executives Comment on the Deal
Alex van Hoek, Apollo’s European private equity lead, praised the carrier's market position: "EasyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition, expansive network and strong brand. Apollo strongly supports easyJet’s commitment to enhancing connectivity... and the important role that its employees play."
Stephen Hester, Chair of easyJet, added: "While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders."
Company History and Growth
Founded in 1995 by Greek-Cypriot entrepreneur Sir Stelios Haji-Ioannou, easyJet launched as a no-frills budget carrier operating just two leased aircraft out of London Luton Airport. The airline floated on the London Stock Exchange in 2000, operating as a publicly traded company owned by institutional investors alongside Sir Stelios and his family, who remained its largest individual shareholders.
Over three decades, easyJet has grown into one of Europe's largest airlines, now carrying over 90 million passengers annually across a network spanning more than 1,000 routes and serving over 150 destinations throughout Europe and North Africa.
