Apollo Global Management has launched a £5.7 billion ($7.65 billion) offer for budget airline easyJet, outbidding rival private equity firm Castlelake's £4.9 billion bid and potentially sparking a full-blown takeover battle.
Key Takeaways
Apollo Global Management has launched a £5.7 billion ($7.65 billion) offer for budget airline easyJet, outbidding rival private equity firm Castlelake's £4.9 billion bid. The offer of about £7.15 per share prompted easyJet's board to withdraw its recommendation for Castlelake's offer of £6.90 per share.
- Apollo offers £5.7B ($7.65B) for easyJet, outbidding Castlelake
- EasyJet shares rose as much as 15% in early Friday trade
- Apollo commits to satisfying merger control and EU clearances
- Founder Stelios Haji-Ioannou could receive £855M if he sells his stake
- Deal subject to shareholder and regulator approval
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▼Source Claims Check
1 Difference FoundAll 7 publishers report consistent facts across 2 key claims. 1 point of difference noted.
| Claim | Status | Reason | |
|---|---|---|---|
| Share Price Increase | 1 Difference | Reuters reports shares rose 15%; CNBC says they popped 13% | ▼ |
| Offer Value | Broad Agreement | Apollo offers £5.7B ($7.65B) for easyJet | |
| Easyjet Losses | Broad Agreement | EasyJet reported £552M loss in first half of financial year |
Share Price Increase
▼Reuters reports shares rose 15%; CNBC says they popped 13%
Offer Value
Broad AgreementApollo offers £5.7B ($7.65B) for easyJet
Easyjet Losses
Broad AgreementEasyJet reported £552M loss in first half of financial year
This analysis is AI-generated and may not perfectly represent each source's reporting. Always read the original articles for full context.
The offer of about £9.6 per share prompted easyJet's board to withdraw its recommendation for Castlelake's offer of £9.2 per share, which the two sides had agreed in principle just days earlier. According to Reuters, shares in easyJet rose as much as 15% to £6.75 in early Friday trade.
Apollo has committed to taking 'all necessary steps' to satisfy any merger control and EU subsidies-related clearances required to complete the deal, according to The Guardian. The firm also plans to keep the easyJet brand after a potential acquisition by continuing the existing brand licence agreement with founder Stelios Haji-Ioannou.
Haji-Ioannou, who owns roughly 15% of the airline and collects royalties on its revenue for licensing the 'easy' brand, could potentially receive an £855 million payday if he chooses to sell his stake. Apollo has until August 7 to make a firm offer for easyJet.
According to Sky News, the deal is subject to shareholder and regulator approval, but if agreed, it will mean easyJet is no longer listed on the London Stock Exchange. The latest offer suggests a bidding war may be under way for the airline, which has become a takeover target after grappling with a post-pandemic recovery and high jet fuel costs.
EasyJet most recently reported an increased loss of £552 million for the first half of its financial year. According to CBS News, in May, EasyJet reported losses deepened by 27 percent in the first half of the financial year to £377 million as fuel prices soared and upended travel plans.
How this summary was created
This summary synthesizes reporting from 7 independent publishers using AI. All sources are cited and linked below. NewsBalance is a news aggregator and media literacy tool, not a news publisher. AI-generated content may contain errors or inaccuracies — always verify important information with the original sources.