Apollo Global Management acquires Easyjet for £5.7bn

Published Aug 6, 02:48 PM UTC

Easyjet has agreed to a £5.7 billion takeover by American private equity firm Apollo Global Management, after rival bidder Castlelake withdrew from the bidding process. The deal, announced jointly on Thursday, has the backing of Easyjet founder Stelios Haji-Ioannou, who plans to remain a long-term major shareholder. Apollo's offer represents an 81% premium to the airline's pre-bid share price. To comply with EU ownership rules requiring majority EU control, Haji-Ioannou will roll his family's stake into the new parent company, and a 5% stake will be placed in an EU trust, leaving Apollo with 49.9% ownership. The acquisition marks the first time a large European carrier will be held in private markets. Castlelake, which had a preliminary £5.5 billion offer accepted, pulled out after Apollo tabled a higher bid. PJT Partners, Barclays, and Citigroup advised Apollo on the deal.