Apollo Global Management has become the frontrunner in the battle for easyJet after agreeing key financial terms for a proposed £5.7bn takeover, prompting the airline’s board to abandon support for a lower rival bid from Castlelake.
The new offer is £7.15 per share, significantly higher than Castlelake’s £6.90 offer. It includes an 81% premium to the pre-bid share price, meaning Apollo is offering shareholders 81% more than easyJet’s share price before takeover speculation began. This is 22% above the highest share price seen in the previous four years. For example, if an investor owned 1,000 easyJet shares, before the offer those shares were worth around £3,940.
Under Apolo’s offer, they would receive £7,150.
ANALYSIS: The easyJet takeover bid
Although an offer has been made, it is not binding and due diligence is still pending. Regulatory approvals are required and Apollo has until August 7, 2026 to make a firm offer or withdraw.
easyJet also says that Apollo believes in the airline’s ongoing strategy to evolve and strengthen the low-cost airline model, particularly by expanding the fleet through the deployment of the larger A321XLRs, as well as enhancing the ancillary and loyalty offering, and expanding Holidays into a structurally differentiated revenue stream.
Apollo further believes that the operational and commercial ambitions of easyJet management can be substantially accelerated through access to incremental capital and the long-term strategic and business planning offered by a private company environment.
Apollo is also proposing a “residual equity” alternative that would allow eligible shareholders to transfer their existing holdings into the investment vehicle through which Apollo would own easyJet, allowing them to participate in the future growth of the airline.
Under the Takeover Code, Apollo has until August 7, 2026 to announce its firm intention to make a bid for easyJet or confirm that it has no intention to proceed. Until then, easyJet has advised shareholders not to take any action.
