EasyJet receives competing takeover bids from Apollo and Castlelake
9 reported3 unconfirmed
According to a single-source report from The Guardian, easyJet has received a takeover approach from US private equity firm Apollo Global Management, topping a previous offer from Castlelake. Apollo’s bid is 715p per share, valuing the airline at approximately £5.7bn, compared to Castlelake’s earlier offer of 690p. The Guardian reports that Apollo’s approach includes a direct appeal to founder Sir Stelios Haji-Ioannou, whose family holds a 15% stake and controls the brand license for the “easy” name. Both offers must comply with EU ownership rules requiring at least 50.1% of ownership and control within the region. The article notes that easyJet’s share price had been depressed before the Iran conflict affected airline valuations, and the company’s medium-term profit target of over £1bn pre-tax remains achievable. The Guardian describes the situation as a familiar pattern on the London market, where a mispriced share price attracts US buyers.
What’s reported
Apollo Global Management has made a takeover offer for easyJet at 715p per share, valuing the company at £5.7bn.
Castlelake had previously made five offers, the last at 690p per share.
Apollo’s bid is 3.6% higher than Castlelake’s last offer.
Apollo says it will continue the brand license agreement with Sir Stelios Haji-Ioannou’s private firm and seek to boost easyJet’s revenues.
Castlelake is a private credit fund with $38bn of assets under management, traditionally focused on financing and leasing in the airline industry.
Both offers must comply with EU ownership rules requiring at least 50.1% of ownership and control within the region.
easyJet owns 208 aircraft outright and has others on order.
The company reported pre-tax profit of £665m last year and has a medium-term target of over £1bn pre-tax profit.
The article states easyJet’s share price was depressed before the Iran conflict affected airline valuations.
Open questions
Whether Castlelake will make another offer in response to Apollo’s bid.
Whether EU regulators will accept the legal structure proposed by either bidder to comply with ownership rules.
What specific changes Apollo or Castlelake would make to easyJet’s operations beyond continuing the brand license and providing capital.
Key figures
Sir Stephen Hester – chair of easyJet
Sir Stelios Haji-Ioannou – founder of easyJet, holds 15% family stake and controls the “easy” brand license
Apollo Global Management – US private equity firm
Castlelake – US private credit fund
Sources: The Guardian
