Castlelake has officially pulled its offer to acquire easyJet, confirming its decision after previously proposing a £6.90 per share bid. This move leaves Apollo Global Management as the only remaining suitor in the takeover battle for the budget airline. Castlelake's initial offer valued easyJet at approximately £5.2 billion, which was later eclipsed by Apollo's in-principle agreement for £7.15 per share, totaling around £5.7 billion. easyJet had initially agreed to Castlelake's offer but later indicated it was no longer inclined to recommend it after Apollo's superior bid.
The deadline for both firms to make a firm offer or withdraw was set for August 7, 5 PM. Castlelake's original deadline was August 3 but was extended to align with Apollo's. Prior to its withdrawal, Castlelake had been considering its options after easyJet shifted its recommendation. The US investment firm had structured its bid to comply with EU regulations requiring airlines to be majority-owned by EU citizens, proposing a partnership with two EU nationals, Peter Bellew and Mark Breen, to hold a 51% stake in the airline.
EasyJet's shares have experienced significant volatility throughout the takeover saga, with prices surging on news of the bids. The airline's shares jumped nearly 15% to approximately 673p on one occasion. At its peak, the share price reached around 623p. Analysts consider easyJet an attractive target due to its profitability, large fleet, and valuable take-off and landing slots at major airports. The withdrawal of Castlelake now focuses attention solely on Apollo's firm offer, which is still subject to formalization.
