EasyJet battle takes off with £5.7 billion approach

EasyJet is set for a £5.7 billion Apollo takeover.

The airline has agreed a £7.15 per share offer in principle from the private equity firm.

The move comes just days after the Luton-based airline gave the nod to a £5.5 million approach from US suitor Castlelake.

However, bosses say Apollo’s offer “delivers a superior outcome” for shareholders by providing a higher cash value, adding the board was therefore “no longer minded to recommend the Castlelake proposal”.

It is understood the EasyJet brand would remain operational following any takeover.

Apollo’s offer values the carrier’s fully diluted share capital at about £5.7 billion.

Castlelake’s approach – welcomed by EasyJet after four failed bids – stood at £6.90 per share, which valued the business’ shares at £5.5 billion on a fully diluted basis.

Apollo has built a sizeable portfolio of UK businesses following big acquisitions like parcel delivery company Evri for £2.7 billion and Wagamama owner The Restaurant Group for about £500 million.

It is also part of a group of US and UK investment companies that effectively own Thames Water as its creditors.

An EasyJet spokesperson said: “Apollo places a high value on people and believes that identifying and retaining key staff within the group will be of paramount importance.

“Apollo also attaches great importance to the strength of the EasyJet brand and intends that it will remain in use following completion of the proposed transaction.”

EasyJet was founded by Sir Stelios Haji-Ioannou in 1995 to offer a low-cost alternative to British Airways, and has since expanded to become one of the largest networks across Europe.

Sir Stelios is set to net a windfall from any sale because he still owns more than 15 per cent of the firm alongside his family.

Apollo has until August 7 to make a formal offer under City takeover rules.

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