EasyJet’s board has accepted in principle a £5.7 billion offer from US private equity firm Apollo, triggering a bidding war with rival investor Castlelake.
The Apollo offer values easyJet at around £7.15 per share, surpassing Castlelake’s previous best offer of £6.90 per share, which the easyJet board had previously indicated it was ‘minded to accept’.
Apollo has a background in travel, acquiring The Travel Corporation, which includes brands such as Trafalgar, Uniworld, Contiki and Insight Vacations, two years ago.
It is established in aviation, with investments across airline financing, leasing and operations. It has previously provided funding to Air France-KLM, and taken a major stake in Aeromexico following its restructuring.
In a statement to the London Stock Exchange, the Luton-based airline said its board had ‘unanimously concluded’ that Apollo’s proposal is at a level it ‘would be minded to recommend’ to shareholders.
It continued: “The Proposed Cash Offer delivers a superior outcome for easyJet shareholders by providing a higher cash value than Castlelake’s latest proposal of £6.90 per easyJet share, submitted on 4 July 2026.
“In addition, the Proposed Transaction offers the opportunity for eligible easyJet shareholders who participate in the Stub Equity Alternative to have exposure to easyJet’s future growth and long-term value creation potential alongside the Apollo Funds.
“The easyJet Board further believes that the Proposed Transaction offers an attractive combination of value, strategic alignment and long-term stewardship of the business. Accordingly, the easyJet Board is no longer minded to recommend the Castlelake Proposal.
“Accordingly, the easyJet board is no longer minded to recommend the Castlelake proposal.”
As with Castlelake’s proposal, the deal is not yet confirmed and remains subject to further steps, including due diligence and regulatory approvals.
Apollo has until 5pm on 7 August to make a firm offer or walk away, while Castlelake’s deadline is 5pm on 3 August.
Any formal offer would still need shareholder approval and must comply with EU rules requiring European airlines such as easyJet to be at least 51% owned by EU investors.
Apollo described easyJet as one of the ‘most attractive businesses in the global aviation sector’, in the statement to the London Stock Exchange.
It continued: “Apollo believes in easyJet’s existing strategy of evolving and strengthening the low-cost carrier model, most notably through upgauging the fleet, enhancing the ancillary and loyalty offering, and scaling Holidays into a structurally differentiated earnings stream.
“Apollo further believes that easyJet management’s operational and commercial ambitions can be substantially accelerated via the access to incremental capital and longer-term business and strategic planning that a private company setting affords.
“Apollo recognises the important contribution that easyJet’s management team, alongside easyJet’s employees, have made towards the company’s successes. Apollo places a high value on people and believes that identifying and retaining key staff within the easyJet Group will be of paramount importance.
“As long-term oriented shareholders with a track record of airline value creation and growing the employee bases of prior airline investments, Apollo sees significant potential in easyJet’s growth path ahead, to the benefit of all stakeholders including employees.
“To this end, Apollo looks forward to partnering with easyJet’s employees to accelerate and enhance easyJet’s continued success following completion of the proposed transaction.
“In particular, the strong commitment of easyJet’s employees to its continued growth as part of the Apollo Funds’ broader portfolio will be critical, and Apollo believes that easyJet’s employees will benefit from greater opportunities as a result.
“Apollo intends to combine its knowledge of the aviation industry with that of easyJet’s employees as a foundation for successful collaboration.
“Apollo also attaches great importance to the strength of the easyJet brand (which is the leading brand in the broad portfolio of the “easy” family of brands which is owned by easyGroup Ltd, the investment vehicle of easyJet founder Sir Stelios Haji-Ioannou) and intends that it will remain in use following completion of the proposed transaction.
“Apollo intends to keep in place (and does not intend to make any changes to) the brand licence agreement between easyJet and easyGroup Ltd.”
