easyJet agrees to £5.7 billion takeover
Key Points
- Apollo proposed £7.15 per share for easyJet, valuing the airline at £5.7 billion.
- The offer beats Castlelake's £6.90 per share proposal submitted on 4 July 2026.
- easyJet's board said it is no longer minded to recommend the Castlelake bid.
- easyJet shares rose 14% on Friday (10 July) following the announcement.
- Apollo must make a firm offer or walk away by 7 August 2026.
easyJet has reached agreement in principle on the key financial terms of a £5.7 billion cash takeover proposal from US asset manager Apollo, worth £7.15 per share, the airline announced on Friday (10 July).
The proposal from Apollo Management X, submitted to the easyJet board on Wednesday (8 July), tops the £6.90 per share offer from Minneapolis-based private equity firm Castlelake, lodged on Saturday (4 July).
The easyJet board said the Apollo proposal “delivers a superior outcome” for shareholders and confirmed it was “no longer minded” to recommend the Castlelake proposal.
Shares in the Luton-based carrier jumped 14% on the news.
The £7.15 offer represents an 81% premium to easyJet’s closing price of £3.94 on 28 May, the last business day before the offer period opened on Castlelake’s approach. It also represents an 80% premium to the 90-day volume-weighted average of £3.97 and a 22% premium to easyJet’s highest share price in the four years to 28 May.
The board said it would be minded to recommend the offer to shareholders if Apollo announces a firm intention to bid on the same financial terms, subject to agreement on all other terms and definitive documentation.
As an alternative to cash, Apollo is proposing a “stub equity” option allowing eligible shareholders to roll their existing easyJet holdings into the vehicle through which Apollo’s funds would own the airline. The terms of that alternative, which would carry voting rights, remain under discussion.
Apollo confirmed it would take “all necessary steps” to satisfy merger control and EU Foreign Subsidies Regulation conditions, alongside a “best endeavours” commitment on other regulatory clearances.
For passengers, the easyJet name stays. Apollo said it intends to keep the brand in use and will make no changes to the brand licence agreement between easyJet and easyGroup, the investment vehicle of founder Sir Stelios Haji-Ioannou.
Apollo said it expects brand value and associated royalties to increase as its growth plans take hold, and stated that retaining key staff across the easyJet Group “will be of paramount importance”.
