Apollo Offers £5.7 Billion for EasyJet, Outbidding Castlelake

EasyJet Plc received a revised acquisition offer from Apollo Global Management on Tuesday, valuing the airline at approximately £5.7 billion. This new bid of 715 pence per share surpasses a previous proposal from Castlelake LP, another US investment firm. The development introduces a potential bidding war between the two private equity entities for control of the budget airline.

Apollo's offer represents a significant premium over EasyJet's recent trading performance, signaling the firm's confidence in the airline's future prospects. The terms of the bid were detailed in a statement released by Apollo, which highlighted the strategic advantages of integrating EasyJet into its broader aviation portfolio. Castlelake's initial offer, which was reportedly lower, had been under consideration by EasyJet's board.

The unsolicited bid from Apollo introduces a new dynamic to the ongoing discussions regarding EasyJet's ownership. EasyJet's board is expected to carefully evaluate both proposals, considering shareholder value and the long-term strategic implications for the company. The airline has been navigating a complex post-pandemic recovery, with fluctuating demand and operational challenges.

Sources close to the situation suggest that Apollo's aggressive approach aims to secure a dominant position in the European low-cost carrier market. The outcome of this potential bidding war could have significant implications for the competitive landscape of the aviation industry, particularly within the budget airline sector. Further announcements are anticipated as EasyJet's board deliberates on the competing offers.