EasyJet considers £5.7bn takeover bid by US giant
UK airline preferring Apollo's bigger offer over Castlelake's
EasyJet has agreed in principle to a £5.7 billion takeover offer from Apollo, sparking a bidding war for the UK airline.
The Luton-based carrier had previously accepted a bid from American investment firm Castlelake.
Apollo's offer is priced at £7.15 per share, valuing EasyJet’s fully diluted share capital at approximately £5.7 billion.
Payment would involve a mix of equity and debt, providing a higher cash value compared to Castlelake's £6.90-a-share proposal.
This previous bid from Castlelake valued EasyJet’s shares at £5.23 billion, or £5.5 billion on a fully diluted basis.
According to EasyJet, Apollo's offer provides a better outcome for shareholders, leading the board to reconsider its recommendation for the Castlelake bid.
Apollo has expressed its commitment to maintaining EasyJet's brand and placing significant value on the company's staff.
A formal offer from Apollo is expected by 7th August.