EasyJet received a surprise takeover proposal from Apollo Global Management that values the U.K. budget airline at about £5.7 billion ($7.7 billion), according to Bloomberg. The offer represents a major twist in the ongoing takeover battle for EasyJet.
Apollo’s proposal values EasyJet at 715 pence per share. This tops a rival offer from Castlelake, which had most recently proposed 690 pence per share after multiple rounds of engagement with the airline.
EasyJet said Apollo’s proposal is superior to Castlelake’s offer. As a result, the company is no longer inclined to recommend the Castlelake proposal to shareholders.
The EasyJet board also indicated that the financial terms of Apollo’s proposed cash offer are at a level it would be prepared to recommend to shareholders. The development sets up a potential contest between Apollo and Castlelake for control of the airline.
The Apollo proposal follows an extended back-and-forth between EasyJet and Castlelake. Castlelake had repeatedly increased its offer, with EasyJet eventually opening its books to the investor after a prior proposal reached 650 pence per share.
Castlelake later improved its offer to 690 pence per share. But Apollo’s higher 715 pence-per-share proposal has shifted the takeover dynamics and placed pressure on Castlelake to decide whether to return with an improved bid.
Apollo said it believes EasyJet’s operational and commercial plans could be accelerated with access to additional capital and the longer-term strategic flexibility of operating as a private company. Apollo also proposed giving shareholders the option to roll their existing shares into a stub equity alternative.
A key issue for any overseas buyer is European airline ownership regulation. Airlines operating in Europe are required to be majority owned and controlled by European interests, creating a hurdle for U.S.-based investment firms seeking control of carriers.
Apollo said it would seek to satisfy the necessary ownership and control requirements. Castlelake had previously sought to address the same regulatory challenge by involving two Irish airline executives.
The offer comes at a pivotal time for EasyJet and the broader European airline sector, where carriers continue to balance strong travel demand with cost pressures, aircraft supply constraints, and competition across short-haul routes. A successful deal would mark a significant private equity bet on the future of European low-cost aviation.
