EasyJet weighs $7.7 billion rival takeover offer from Apollo
An EasyJet Airbus A320 aircraft is seen at Malpensa Airport near Milan, Italy, on October 3, 2018.
Stefano Rellandini | Reuters
EasyJet It said on Friday that it was considering a $7.7 billion acquisition offer. Apollo Global Management.
Under the terms of the cash offer, easyJet shareholders will be entitled to receive £7.15 ($9.61) per share of the company, valuing the company at £5.7 billion, or $7.66 billion.
As an alternative to paying cash, Apollo will also offer shareholders a Stub Share Alternative: an option to “transfer their existing shares in easyJet to the vehicle through which the Apollo Funds will hold their investment in easyJet”.
The terms of this alternative, which would allow shareholders to protect their voting rights, are still being discussed further.
Shares in EasyJet rose on Monday after the airline accepted a $7.3 billion buyout offer from private equity firm Castlelake.
Apollo’s proposed offer price represents a premium of 81% to easyJet’s closing share price of £3.94 per share on May 28, the last business day before the bid period for Castlelake’s bid to take over the company begins.
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