Apollo swoops with higher $14.78-a-share bid for easyJet, edging out Castlelake
Apollo Global Management made a higher cash bid for easyJet, offering £7.15 per share (about AU$14.78), valuing the airline at £5.2 billion. easyJet said its board withdrew support for Castlelake after concluding Apollo’s terms are superior to Castlelake’s £6.90 offer. Apollo must act by Aug 7 under UK rules.
How this was made
The 30-second read
Why it matters
Apollo’s higher cash offer prompts easyJet’s board to withdraw support for Castlelake, increasing the likelihood of a revised transaction and changing deal-spread expectations.
Market read
This is a live takeover contest with explicit per-share pricing and near-term firm-offer deadlines, directly affecting easyJet’s takeover premium.
What to watch
Deal outcomes can hinge on regulatory approvals, shareholder acceptance thresholds, and whether Apollo’s offer becomes firm before the stated deadlines.
Background
easyJet previously agreed in principle to a $10 billion takeover bid from Castlelake, then faced a competing Apollo proposal.
Market effects
Signals consolidation appetite in European low-cost aviation and may lift deal expectations for other airline M&A targets.
UK-listed airline M&A dynamics, with LSE-listed easyJet as the immediate focal point.
US PE involvement highlights cross-border capital flows into European aviation assets.
Counterpoint
Apollo’s higher bid may still be outbid later, so chasing the premium could be risky if negotiations fail or financing terms change.
Key entities
- public_companyeasyJet
UK budget airline whose board support shifted from Castlelake to Apollo’s higher bid.
- private_equityApollo Global Management
Proposed a higher cash offer to acquire easyJet and pledged brand and strategic continuity.
- investment_firmCastlelake
Rival bidder whose support was withdrawn after Apollo’s higher terms.
