Castlelake withdraws as Haji-Ioannou family backs transaction
British budget airline easyJet agreed to Apollo Global Management’s £5.7 billion ($7.68 billion) takeover proposal on Aug. 6, ending a weekslong contest with Castlelake.
Castlelake had made several approaches for easyJet in recent weeks. The airline had agreed in principle to a proposal worth more than $7 billion before Apollo entered the contest with a higher offer.
Apollo’s proposal values each easyJet share at £7.15 in cash. Castlelake’s offer was £6.90 per share. Castlelake said Thursday that it would not make a formal bid, clearing the way for Apollo’s agreement.
The Haji-Ioannou family, easyJet’s largest shareholder, said it supports the transaction. The family controls a 15.31% stake in the airline.
Stelios Haji-Ioannou, who founded easyJet in 1995, said he was satisfied with Apollo’s plans. “My family and I intend to remain invested as long-term major shareholders of easyJet for the next chapter in the company’s journey,” he said.
Apollo said it had followed easyJet for years and viewed the airline as one of the most attractive businesses in the global aviation sector. The asset manager cited easyJet’s expansive network, operations in key markets, growth in its package-vacation business and progress by management in diversifying the business model.
Apollo already has investments in Sun Country Airlines, Aeromexico and Atlas Air. Taking over easyJet would give the asset manager control of one of Europe’s best-known low-cost airlines.
The asset manager said private ownership would give easyJet access to capital and allow management to invest with more flexibility. Apollo also said private ownership could help the company pursue opportunities that might take longer than is typically possible in public markets.
EasyJet began flying in November 1995, with routes from Luton to Glasgow and Edinburgh, and went public on the London Stock Exchange in 2000. The airline has since grown to a fleet of more than 300 aircraft operating more than 1,000 routes across more than 30 countries.
The airline also holds takeoff and landing slots at some of the region’s busiest airports and has expanded its brand into a package-vacation business. Its distinctive orange branding has become associated with its low-cost airline operations.