Apollo gatecrashes easyJet sale with surprise £5.7bn takeover offer - business live
Summary
The US private equity firm Apollo has made a surprise offer to buy the airline easyJet for £5.7 billion, exceeding a previous bid by another US firm, Castlelake. EasyJet’s board is likely to recommend Apollo’s higher bid of £7.15 per share to its shareholders.Key Facts
- Apollo offered £5.7 billion to buy easyJet, which is more than Castlelake’s £5.5 billion bid.
- EasyJet’s board prefers Apollo’s offer of £7.15 per share, higher than Castlelake’s £6.90 per share.
- Apollo’s bid gives shareholders a 22% premium over easyJet’s closing share price and 81% over the price before Castlelake’s bid.
- European rules require airlines to be majority owned by European entities; Apollo said it will meet these rules.
- Castlelake planned to meet ownership rules by adding two Irish airline executives.
- The deal would take easyJet private, meaning it would no longer be publicly traded on the stock market.
- Apollo’s bid was unexpected and has disrupted the previous sale process.
- EasyJet shares rose by 13% after the announcement of Apollo’s offer.
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