EasyJet has given two rival private equity firms until Friday 7 August to announce whether they intend to make a firm offer for the airline, bringing to a climax a two-month bidding war.
So far, US investment firm Castlelake has offered £5.2bn in principle, which was later trumped by Apollo Global Management (owner of travel group The Travel Corporation, home to several travel brands including Trafalgar and Contiki), which offered £5.7 billion.
EasyJet’s board announced on 10 July that it had reached an agreement in principle on the key financial terms of a possible cash offer from Apollo, which values the airline at £7.15 per share, more than 80% higher than the pre-bid share price.
Since then, easyJet has been providing diligence access to both Apollo and Castlelake.
Initially, Castlelake was obliged to confirm its intention to make a formal offer by today while Apollo was given a deadline of Friday.
However, easyJet announced this morning that it has given both investment firms until 7 August to either announce a firm intention to make an offer or walk away.
EasyJet stressed that ‘there can be no certainty that any firm offer will be made’.
It is advising shareholders not to take any action at this time.
Today’s announcement was made without Apollo or Castlelake’s consent.
