US private equity firm Apollo enters bidding war for easyJet with £5.7bn offer
Summary
The board of easyJet is considering a £5.7 billion cash offer from US private equity firm Apollo, which values the airline at £7.15 per share. This offer has led easyJet’s board to favor Apollo’s bid over an earlier £5.5 billion proposal from another US firm, Castlelake.Key Facts
- easyJet’s board is likely to recommend Apollo’s £5.7 billion all-cash offer to shareholders.
- Apollo’s offer values easyJet shares at £7.15 each, higher than Castlelake’s £6.90 per share bid.
- easyJet had previously agreed “in principle” to accept Castlelake’s £5.5 billion offer after several increases.
- Analysts say Castlelake’s offer undervalued easyJet.
- Apollo’s bid allows shareholders to keep their shares if the company is taken private.
- Apollo supports easyJet’s current strategy and plans to keep the company intact, without breaking it up.
- Apollo values easyJet’s management and employees and wants to retain key staff.
- Apollo has until 7 August to make a final offer for the airline.
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