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easyJet backs Apollo Global's £5.7 billion, £7.15-a-share takeover approach

easyJet backs Apollo Global's £5.7 billion, £7.15-a-share takeover approach

The British budget carrier shifted support from Castlelake to Apollo after the higher all-cash proposal, which also offers shareholders a way to retain an investment in the airline.

Fact Check
Multiple independent reputable outlets confirm the claim. BBC confirms easyJet agreed in principle to Apollo's £5.7bn (£7.15/share) proposal, above Castlelake's £6.90/share bid. CNBC confirms the £7.15/share cash offer with a stub equity alternative and that it valued easyJet above the rival bid. Proactive Investors confirms Apollo won the board's backing. All key elements of the claim — the £5.7bn value, £7.15/share, superiority over Castlelake, stub equity option, and board support — are corroborated.
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Summary

easyJet has moved to support Apollo Global Management's £5.7 billion takeover proposal, which values the British budget carrier at £7.15 a share and tops Castlelake's £6.90-a-share bid that the board had been prepared to recommend earlier in the week. The all-cash offer, worth roughly $7.65 billion to $7.7 billion, includes a stub equity alternative that would allow existing shareholders to retain a stake in the company through Apollo's acquisition vehicle. Apollo's proposed price represents an 81% premium to easyJet's closing share price of £3.94 on May 28, before the offer period linked to Castlelake's approach began. easyJet shares rose about 13% to 15% on the news, reaching their highest levels since early 2022, as investors weighed the prospect of a higher counterbid in a takeover battle shaped by renewed interest in airlines during the post-pandemic travel recovery.

Terms & Concepts
  • stub equity alternative: An option in a takeover that lets shareholders exchange their shares for a continuing equity stake in the acquiring vehicle instead of taking only cash.