Apollo Global Management has secured an agreement to acquire easyJet after rival bidder Castlelake withdrew from the takeover process, ending months of uncertainty over the future of the British low-cost carrier.
The transaction values easyJet at approximately £5.7 billion ($7.7 billion), with Apollo offering 715 pence per share. The airline's board unanimously recommended the offer, describing it as fair and in the best interests of shareholders.
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In a separate statement, founder Sir Stelios Haji-Ioannou confirmed that he and other members of his family will support the acquisition. Together, they control about 15.3% of easyJet's share capital and have agreed to exchange their shares for an equity stake in Apollo's acquisition vehicle rather than cash.
"My family and I intend to remain invested as long-term major shareholders of easyJet for the next chapter in the company's journey," Haji-Ioannou said.
He added that Apollo's plans to expand the airline convinced the family to back the transaction, noting that the investment group intends to pursue further growth under private ownership.
Apollo said existing shareholders who remain invested, including the Haji-Ioannou family, are expected to own between 45.1% and 49.9% of the acquisition vehicle. An EU management trust will hold up to 5%, while Apollo-managed funds will own the remainder, up to 49.9%.
The ownership structure is intended to preserve compliance with European Union airline ownership rules, which require carriers operating within the bloc to remain majority owned and effectively controlled by EU interests.
Castlelake formally abandoned its pursuit on Thursday after submitting five proposals during the process. The investment firm did not disclose why it decided to withdraw.
If completed, the transaction would take easyJet private after more than 25 years as a publicly traded company.
