EasyJet's board has confirmed its agreement to sell the airline to private equity firm Apollo for £5.7bn. This decision followed a period of bidding interest, including four previous offers from rival Castlelake.
The winning bid from Apollo values each share at 715 pence. However, as of 10 August, the share price stands at 671p, creating a 44p difference per share for retail shareholders. This represents an approximate 6.5% gap between the current market price and the expected takeover price.
The proposed takeover is contingent on a shareholder vote, though EasyJet founder Sir Stelios Haji-Ioannou, who holds about 15% of the business, has backed the deal. Regulatory hurdles also need to be cleared, particularly concerning EU rules that require airlines in the continent to be majority-owned by European businesses, given Apollo is a US-based firm.
Investors holding shares in an ISA or SIPP will not incur tax on a sale. For those with shares in a general investment account, tax may be payable depending on individual circumstances, including profit or loss, tax band, and other capital gains.