Low-cost carrier easyJet has agreed to a £5.7bn takeover by US investment firm Apollo after rival bidder Castlelake withdrew from the contest to acquire the airline.
Under the deal, shareholders will be offered £7.15 in cash for each share. Eligible investors can instead exchange their entire holding for unlisted shares in Apollo’s acquisition company, allowing them to retain an indirect investment in the airline.
The transaction will be made through Eagle Bidco, a company indirectly owned by investment funds managed by Apollo. It is expected to be completed by the end of March 2027, subject to shareholder, court and regulatory approvals in several countries.
Airline founder Sir Stelios Haji-Ioannou and his family, who collectively remain easyJet’s largest shareholders with a 15.31% stake, have committed to support the acquisition. They will exchange almost their entire holding for unlisted shares rather than accepting cash.
“Having carefully reviewed the proposal by Apollo, my family members and I have decided to support the recommended acquisition announced by the easyJet board,” Sir Stelios said in a statement.
| Current easyJet fleet | ||
| Aircraft type | Number | Average age |
| Airbus A319-100 | 79 | 17.8 years |
| Airbus A320-200 | 183 | 12.5 years |
| Airbus A320neo | 77 | 5.1 years |
| Airbus A321neo | 31 | 3.7 years |
The easyJet founder added that the family intended to remain invested as long-term major shareholders during the airline’s “next chapter”.
Apollo said it believed easyJet would be better able to pursue long-term investment and growth as a privately owned company. Its priorities include further developing the carrier’s network, revenue management, loyalty programme and ancillary products, while continuing to expand easyJet holidays and renew the airline’s fleet.
The investor has said it does not intend to change the location or functions of easyJet’s UK headquarters or its air operator’s certificates in the UK, Austria and Switzerland. It has also pledged to safeguard employees’ existing contractual and statutory rights.
| Airbus orders | |||
| Aircraft type | No. ordered | No. delivered | No. to be delivered |
| A320neo | 200 | 77 | 123 |
| A321neo | 184 | 31 | 153 |
The announcement followed Castlelake’s decision not to proceed with its own offer. The aviation-focused investment company had previously proposed paying £6.90 per share, but easyJet subsequently backed Apollo’s higher proposal.
Castlelake said it had reached its decision after “careful consideration” and thanked easyJet’s board and management for their engagement.
Its withdrawal is subject to the restrictions of the UK Takeover Code. However, Castlelake has reserved the right to return under certain circumstances, including following a firm offer from Apollo. As a result, its announcement does not completely rule out a renewed approach before easyJet’s shareholders vote on the acquisition.
