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EasyJet agrees in principle to Apollo takeover, topping Castlelake bid

Apollo’s offer values EasyJet at 7.15 pence per share, higher than Castlelake’s 6.90 pence, and sets an Aug. 7 deadline for a firm bid.

Reported · Written up by our desk · M&A & Deals

EasyJet has agreed in principle to a takeover proposal from US firm Apollo Management that it says improves on an earlier offer from US investment firm Castlelake, BBC Business reports. The UK low-cost carrier said Apollo’s proposal comes with a higher per-share price and better terms for investors than the deal it had agreed to at the weekend with Castlelake.

Under the terms EasyJet disclosed, Apollo’s offer is worth 7.15 per share, compared with Castlelake’s 6.90 per share, which EasyJet said it is now no longer minded to accept. The airline stressed that the new statement does not confirm a final deal.

EasyJet also outlined deal timelines. Apollo has a deadline of 17:00 on Aug. 7 to either submit a firm bid or walk away, while Castlelake’s deadline for a firm offer is Aug. 3.

The report notes that any takeover faces regulatory scrutiny because EU rules require carriers to be majority owned by EU citizens. EasyJet previously said Castlelake proposed partnering with two EU nationals through a structure intended to give an EU-based company majority control of the airline.

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