EasyJet Plc has received a new takeover proposal from Apollo Global Management, offering £7.50 per share, which values the airline at approximately £5.7 billion. This offer significantly exceeds the £6.90 per share bid, valuing EasyJet at £5.2 billion, that Castlelake LP had previously agreed to in principle. The new bid from the US private equity giant has put Castlelake's previously agreed-upon offer in jeopardy and could lead to a bidding war for the budget carrier.
Apollo's unsolicited offer comes just days after EasyJet's board announced it was minded to recommend Castlelake's fifth proposal to shareholders. The latest development has sparked excitement among investors, with EasyJet's shares reacting positively. The airline's board will now need to evaluate Apollo's offer, which represents a higher premium over its recent market valuation.
This new bid intensifies the scramble for EasyJet, an airline that has long been considered a takeover target due to its valuable airport landing slots and its strong position in the European low-cost travel market. Both Castlelake and Apollo will need to navigate regulatory hurdles, particularly European Union regulations requiring airlines to be majority-owned by EU citizens. Castlelake had previously addressed this by proposing a partnership with two EU nationals.
EasyJet's founder Stelios Haji-Ioannou, who holds a significant stake, has historically been vocal about the airline's management and growth plans, and his reaction to an escalated bidding war remains to be seen. The deadline for Castlelake to make a firm offer has been extended to August 3, 2026, and Apollo will likely need to follow quickly with a concrete proposal to challenge the existing agreement in principle.
