Luton-based low cost carrier easyJet say it has reached an ‘agreement in principle’ with an American investment giant
Budget airline easyJet has agreed to be bought by a US investment giant for £5.7billion.
The Luton-based airline announced it had struck a deal with Apollo Global, trumping an earlier approach by another American suitor, Castlelake.
The carrier confirmed it “reached an agreement in principle on the key financial terms of a possible cash offer for the entire issued and to be issued share capital of easyJet.”
Under the terms of the Apollo Proposal, easyJet shareholders would be entitled to receive £7.15 per easyJet share. Apollo’s swoop comes after easyJet had engaged with Castlelake, a private credit group, about a possible takeover.
It is unclear what the deal, if it goes ahead, would mean for easyJet customers and its employees.
However, it would make the latest in a long line of listed UK companies being snapped-up by foreign buyers, taken private, or moving their listings abroad.
EasyJet said Apollo’s offer was worth 81% more than than £3.94 its shares closed at on May 28, just before Castlelake’s interest in a takeover emerged. It added that it was also more than a fifth over what the shares have reached in the past four years.
Its shares have struggled to recover from suffering a slump during the Covid crisis, and have lagged rivals such as Ryanair and British Airways owner IAG.
A stock market statement said: “Apollo has followed easyJet for many years and continues to regard it as one of the most attractive businesses in the global aviation sector and a highly differentiated franchise with significant long-term growth potential.”
The statement is singled out the potential for the firm’s fast growing easyJet Holidays business.
It added: “Apollo places a high value on people and believes that identifying and retaining key staff within the easyJet Group will be of paramount importance.” It also said other investments by Apollo in airlines had led to it “growing the employee bases”.
EasyJet was founded by entrepreneur Sir Stelios Haji-Ioannou in 1995 to offer low-cost fares in Europe. The first inaugural flights took off in November 1995, flying from Luton to Glasgow and Edinburgh.
