APOLLO TOPS CASTLELAKE BID FOR EASJET AT £5.7BN

The board of easyJet has stated it is "minded to recommend" a £5.7bn all-cash offer from Apollo, a US private equity firm, to shareholders. The proposal values the airline at £7.15 per share. The board's decision on Friday reversed its earlier position, having agreed "in principle" to accept a £5.5bn offer from rival US private equity firm Castlelake earlier in the week. Apollo's offer now supersedes the Castlelake proposal, which the board is no longer minded to recommend.

Apollo has signalled its intention to retain easyJet's current management and strategy rather than restructure the business. The firm stated it supports the airline's low-cost carrier model and plans for fleet upgrades, ancillary services expansion and holiday offerings. The offer permits existing shareholders to remain invested under Apollo's ownership, whereas the Castlelake deal would have forced divestment upon delisting. Apollo must submit a formal offer by 7 August.

The bidding war represents a significant moment for easyJet, as two major private equity bidders compete for control of the British airline. Analysts had previously stated that the Castlelake proposal undervalued the company, suggesting Apollo's higher offer addresses those concerns. The outcome will be determined by shareholder vote, pending completion of Apollo's firm offer submission.