EasyJet agrees in principle to rival £5.7bn takeover bid from US company
No-frills airline EasyJet says it has accepted in principle a £5.7bn takeover offer from US firm Apollo Management.
The offer dwarfs an earlier offer from US investment company Castlelake, which EasyJet also accepted in principle at the weekend.
EasyJet is one of Europe’s largest airlines. It employs more than 19,000 people and flies approximately 1,200 routes in 35 European countries.
The Luton-based company told investors shareholders would receive £7.15 per share under the Apollo offer, which it plans to accept as it provides a “superior outcome” to Castlelake’s offer of £6.90 per share.
EasyJet said its board was “no longer considering” accepting Castlelake’s offer.
The latest statement does not mean that the agreement has been approved. Apollo was given until 5pm on 7 August to make a firm bid for EasyJet or walk away. Castlelake’s final bid deadline is August 3.
Apollo’s move comes after Castlelake made a series of offers for EasyJet; but these offers were initially rejected by the airline, which accused the US firm of trying to buy it “on the cheap”.
But on Sunday EasyJet said it had agreed in principle with US investment firm Castlelake on a potential takeover bid worth around £5.2bn.
One of the key regulatory hurdles to a takeover of EasyJet is that European Union regulations stipulate that the carrier must be majority-owned by EU citizens.
Castlelake had offered to enter into partnership with two EU businessmen, Peter Bellew and Mark Breen. They will have an EU-based company that will have majority control of the airline.
