U.S. private equity firm Apollo offered $9.6 per share for the British budget airline, prompting easyJet's board to reconsider its Castlelake agreement.
7:30 PM
U.S. private equity firm Apollo Global Management has launched a takeover bid for British airline easyJet valued at $7.7 billion, offering $9.6 per share and triggering a competitive auction for the low-cost carrier.
The bid tops an earlier agreement between easyJet and investment firm Castlelake, which had offered $9.2 per share, or 690 pence sterling. Apollo's offer values the company at 715 pence per share.
In a statement, easyJet's board said Apollo's bid "offers an attractive combination of value, strategic alignment and long-term stewardship of the business." The board added that it is "no longer minded to recommend the Castlelake proposal" in light of Apollo's higher offer.
Castlelake had made five successive offers for easyJet before the airline agreed to its takeover proposal earlier this week. The emergence of Apollo as a competing bidder has created a formal auction process for the carrier.
Apollo has until August 7 to submit a final proposal, while Castlelake has until August 3 to make a counter-offer. Both deadlines were set as part of the auction process initiated following Apollo's entry into the bidding.
EasyJet is one of Europe's largest low-cost carriers and operates an extensive network across the continent. The airline has also developed a fast-growing holidays business alongside its core flight operations.
The carrier has faced recent headwinds from elevated fuel costs and geopolitical turbulence affecting travel demand. Despite these challenges, easyJet maintains a resilient European network and a strong balance sheet, according to statements from the company's leadership.
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