EasyJet accepts takeover offer from Apollo, over Castlerock's bid
Summary
EasyJet agreed to a £5.7 billion takeover offer from the U.S. private equity firm Apollo, which is higher than a competing bid from another American firm, Castlelake. EasyJet's board believes Apollo's offer is better for shareholders and has stopped recommending Castlelake’s proposal.Key Facts
- Apollo offered £7.15 per EasyJet share, worth about £5.7 billion ($7.7 billion).
- Castlelake’s rival bid was £6.90 per share, valued at about $6.7 billion.
- EasyJet’s board sees Apollo’s offer as a better deal for shareholders.
- Apollo has until August 7 to make a final offer or abandon the bid, under UK rules.
- EasyJet opened discussions with Apollo on June 25 by sharing company information.
- Castlelake had earlier been set to take EasyJet private after its previous offer was accepted.
- EasyJet reported a 27% increase in losses in the first half of the financial year, due to rising fuel costs and travel disruptions linked to the US-Iran conflict.
- EasyJet’s CEO said the company is prepared to handle ongoing challenges in the latter half of the year.
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