Sir Stelios Haji-Ioannou Archives - International Finance

EasyJet accepts Apollo Global’s 5.7 billion pound offer as Castlelake exits the race

International Finance Business Desk — Mon, 10 Aug 2026 01:00:50 +0000

British low-cost acrrier easyJet has agreed to a 5.7 billion pound takeover by US private equity firm Apollo Global Management, ending a months-long bidding war after rival suitor Castlelake withdrew from the race, the airline announced on Thursday (August 6).

Under the terms of the deal, EasyJet shareholders will receive 7.15 pound a share, a price Apollo had tabled last month after the airline’s board initially recommended a rival offer from Castlelake.

Castlelake had been given until 5 pm on Friday to table a final bid but declined to escalate the contest, saying it was “very appreciative” of its engagement with the EasyJet board.

Founder Sir Stelios Haji-Ioannou and his family will retain a shareholding under the new ownership structure, with existing investors offered the option to sell or transfer stakes up to a maximum of 49.9%.

An “EU Trust” shareholding vehicle will hold up to 5%, a mechanism apparently designed to satisfy European Union (EU) foreign-ownership rules for airlines, while Apollo’s own stake is capped at 49.9%. The takeover is expected to complete by the end of March 2027.

“Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board,” Haji-Ioannou said in a separate statement.

The deal, which comes amid the aviation industry grappling with rising costs from the Iran war, has put easyjet among the string of London-listed companies that have been taken private by private equity firms and largely American companies in recent years as the FTSE 100 share index has traded at a discount to its United States counterpart.

Apollo has pledged to retain EasyJet’s United Kingdom and EU head offices and said it does not intend to cut jobs in the first 12 months after completion, though a limited number of roles tied to the airline’s public listing could be affected if it delists.

The alternative asset management giant, which manages about USD 1.05 trillion in assets and has previously invested in Sun Country Airlines, Aeromexico and Atlas Air, will also accelerate the low-cost carrier’s commercial ambitions, including expanding its fast-growing holidays business, under the new private ownership.

EasyJet Non-Executive Chair Stephen Hester said the board had “carefully evaluated” the proposal against the airline’s standalone prospects and concluded it offered “immediate, certain, and attractive value” for shareholders.

“While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders,” he remarked.

Chief executive Kenton Jarvis said Apollo’s experience in aviation made it “a strong partner” as the airline sought to accelerate growth. Apollo’s European private equity lead, Alex van Hoek, described EasyJet as a leader in European aviation built on a “differentiated market position” and a strong brand.

Sir Stelios said he backed Apollo’s plans “to create more growth” and intended to remain a long-term major shareholder.

The agreement follows a turbulent year for EasyJet, whose shares slumped after quarterly profits fell 70% to 85 million pound in the three months to June, hit by rising fuel costs linked to the Iran war.

Castlelake had earlier offered 5.5 billion pounds, only for Apollo to trump it days later with its winning 5.7 billion-pound bid.

AJ Bell’s Danni Hewson said the price remained “woefully short” of EasyJet’s pre-pandemic highs, though shares still rose on the news.

However, investors and regulators will have their keen interest in how Apollo complies with EU rules on airline ownership, given easyJet’s bases across the bloc. EasyJet’s flying rights within the bloc will depend on the ‌airline remaining ⁠majority owned and controlled by EU interests.

EasyJet’s main base is in Britain, and Britain’s Civil Aviation Authority said it has engaged with the parties involved in the deal.

However, analysts feel that a move to take the low-cost British carrier private might shield it from some of the fallout of the Iran war.

“A delisting would allow easyJet to be less tied to quarterly earnings reporting and less exposed to the ⁠turbulence the sector is likely to face once higher jet fuel costs begin to be reflected more clearly in fares,” said Andrea Giuricin, CEO of transport consultancy TRA Consulting, while interacting with the Reuters.

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With USD 7.7 billion bid, Apollo gatecrashes Castlelake’s easyJet takeover attempts

International Finance Business Desk — Tue, 14 Jul 2026 00:00:34 +0000

US private equity firm Apollo Global Management has gatecrashed Castlelake’s attempt at acquiring British budget carrier easyJet by tabling a 5.7 billion pound (USD 7.65 billion) offer for the airline.

The proposal placed by the Marc Rowan-led venture values easyJet at 7.15 pounds a share, above Castlelake’s 6.90-pound offer, which the British budget carrier’s board had agreed to in principle only days earlier.

Following the approach, easyJet said its board was “no longer minded” to recommend the Castlelake proposal, having unanimously concluded that Apollo’s terms were more attractive to shareholders.

Shares in easyJet jumped as much as 15% on Friday (July 10) to 6.75 pounds, the airline’s highest level since February 2022. However, the ratio was still below Apollo’s offer price. The stock has risen 81% since May 28, the last trading day before Castlelake’s interest became public.

Apollo said it was committed to taking “all necessary steps” to satisfy the European Union’s (EU) merger control and foreign-ownership rules, which require European airlines to remain majority-owned within the bloc even after Brexit.

It has also offered eligible shareholders the option to include/transfer their stakes into the private vehicle that would buy the budget carrier, as the avenue will enable them to continue to own their voting rights. The firm must announce a firm offer by August 7 or walk away, while Castlelake’s deadline falls on August 3.

Apollo said it backed easyJet’s existing strategy of strengthening its low-cost model, including fleet upgrades and expansion of its holidays business, and intended to retain management and staff.

It also plans to preserve the brand license agreement with founder Sir Stelios Haji-Ioannou, who holds roughly 15% of the airline with his family, apart from receiving a 0.25% royalty on easyJet’s revenue for the use of the “easy” brand.

As an alternative to cash, Apollo has offered shareholders the option to roll their stakes into the acquisition vehicle, retaining voting rights.

Castlelake, which went public with its interest in May 2026 after facing early rejections from the board, has partnered with two EU nationals, Peter Bellew and Mark Breen, to meet ownership rules through a separate holding company.

The bidding war comes as the wider aviation sector faces pressure from higher fuel costs following the Iran war. The budget carrier reported a pre-tax loss of 552 million euro for the first half of 2026, widening from 394 million euro a year earlier, though analysts said its profitable network and growing holidays business made it an attractive target for private equity.

“It’s no surprise that a second suitor has appeared for easyJet. The potential for the business remains substantial despite the underwhelming performance of recent years,” said Chris Beauchamp, chief market analyst at investing and trading platform IG.

Stephen Furlong, analyst at Davy Group, Ireland’s leading provider of wealth management and investment banking services, feels that while both Apollo and Castlelake proposals could ultimately gain regulatory approval, the acquisition price will now take the center stage, with the bidding war expected to become a hot one in the coming days.

While Castlelake has remained silent on specific business reorganization plans for easyJet beyond a broad commitment to support the airline’s fleet modernization program, Apollo has laid out its roadmap clearly: retain the airline’s key staff to continue easyJet’s strategy of expanding capacity and growing its holidays business.

And it looks like easyJet has found more solace with Apollo’s bid, as both businesses said in a joint statement, “The proposed cash offer delivers a superior outcome for easyJet shareholders by providing a higher cash value than Castlelake’s latest proposal.”

As per analysts, easyJet’s extensive fleet of over 350 aircraft and well-established model provide an excellent business opportunity for its suitors.

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