The UK airline sector has taken a significant turn with Apollo's £5.7 billion acquisition of EasyJet, eclipsing Castlelake's earlier bid by 24p per share in an all-cash deal valued at 714p per unit. This substantial takeover offer represents an 80% premium on the low-cost carrier's closing price before Castlelake first expressed interest last month, demonstrating confidence in EasyJet's market position and future growth prospects.
The Apollo bid, which surpasses Castlelake's 690p per share proposal by a considerable margin, has been welcomed by EasyJet's board as "delivering a superior outcome for shareholders". The carrier's directors have opted to abandon their earlier backing of the Castlelake deal in favour of Apollo's offer, citing its attractive combination of value, strategic alignment and long-term stewardship.
EasyJet's valuation now stands at approximately £5.7 billion, with the company's board indicating that Apollo's proposal will be put to a shareholder vote in due course. The acquisition underscores major investment firms' enduring interest in established travel industry brands as they navigate ongoing recovery and shifting consumer preferences.
The enhanced valuation on offer from Apollo reflects market expectations of EasyJet's continued growth trajectory, with the airline poised to benefit from sustained demand for low-cost air travel. As such, this latest development serves as a testament to the enduring appeal of the UK's major airlines to global investors.