Apollo trumps Castlelake with £7.15 per share bid for easyJet worth £5.7bn
The UK budget airline's board has switched its backing to a £7.15-per-share proposal from Apollo Global, ditching Castlelake's earlier £6.90 bid and setting the stage for a takeover battle.
British budget airline easyJet has agreed in principle to a takeover by private equity firm Apollo Global, abandoning a rival offer from Castlelake. The new proposal values the London-listed carrier at roughly £5.7 billion ($7.65 billion).
The competing bids
Apollo's proposal of about £7.15 per easyJet share is roughly 3.6% higher than Castlelake's latest bid of £6.90 per share. The Castlelake offer, which would have valued the company at about £5.5 billion, had been agreed in principle only days earlier.
The proposed cash offer delivers a superior outcome for easyJet shareholders by providing a higher cash value than Castlelake's latest proposal.
The board confirmed it was no longer minded to recommend the Castlelake proposal.
- Castlelake
- 690 pence
- Apollo
- 715 pence
What Apollo brings
Apollo expressed confidence in the airline's current direction, stating that it believes in easyJet's existing strategy of evolving and strengthening the low-cost carrier model. The offer at £7.15 per share is a cash proposal, according to the joint statement.
What happens next
The path is now open to a potential takeover battle. Apollo must announce a firm offer for easyJet by August 7 or step away. Castlelake retains until August 3 to formalize its own offer. The dates leave a narrow window in which Castlelake could return with a sweetened bid, or Apollo could seal the acquisition of the orange-branded airline that has been listed in London since 2000.
- Agreed in principle on Castlelake's £6.90/share proposal
- easyJet board withdraws Castlelake recommendation, agrees Apollo's £7.15/share bid
- Deadline for Castlelake to announce a firm offer
- Deadline for Apollo to announce a firm offer
