Castlelake's takeover of easyJet has hit turbulence after the US investment firm's £5.2billion offer was this morning gazumped by Apollo Management.
Earlier this week, the airline revealed it had reached an agreement in principal with Castlelake, the £5.2billion offer representing the firm's fifth takeover approach.
But this morning, easyJet announced it had reached a new agreement in principal, this time with another US company, Apollo Management, worth £5.7billion.
The airline's announcement states the proposed cash offer values the fully diluted ordinary share capital of easyJet at approximately £5.7billion and represents a significant premium of:
- 81% to easyJet’s closing share price of £3.94 per easyJet share as at the close of business on 28 May 2026, being the last business day prior to the commencement of the offer period in relation to the possible offer from Castlelake.
- 22% to easyJet’s share price of £5.88 per easyJet share, being the highest trading share price for easyJet in the four years prior to the period ended on 28 May 2026.
- 80% to easyJet’s 90-day trading volume weighted average share price of £3.97 per easyJet share for the period ended on 28 May 2026.
The announcement to shareholders said: "The easyJet Board has carefully considered the Proposed Cash Offer together with its financial advisers and has unanimously concluded that the financial terms of the Proposed Cash Offer are at a level that it would be minded to recommend to easyJet shareholders.
"The Proposed Cash Offer delivers a superior outcome for easyJet shareholders by providing a higher cash value than Castlelake's latest proposal of £6.90 per easyJet share, submitted on 4 July 2026."
It adds: "As a leading aviation investor with a longstanding track record of creating value across the airline industry, Apollo believes that, through the Proposed Transaction, it is uniquely positioned to deliver the best stewardship of easyJet, supporting easyJet in furthering its business plan and the delivery of its long-term strategic objectives."
FSTE100
The UK's flagship share index, the FTSE 100, was up 40 points at 10,474 shortly after opening this morning.
Brent crude oil futures were down 0.64%, sitting at $75.81 a barrel this morning.
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