EasyJet, a no-frills airline, has agreed in principle to a £5.7 billion buyout deal from US business Apollo Management, just days after accepting a rival offer. The Luton-based carrier stated that Apollo’s offer provided “a superior outcome” to investors than the previous bid from US investment group Castlelake, which EasyJet also agreed to in principle over the weekend.
EasyJet claimed Apollo’s offer was worth £7.15 per share, compared to Castlelake’s £6.90 per share offering, which it said it was now “no longer minded” to accept. EasyJet is one of Europe’s biggest airlines. It employs over 19,000 people and operates around 1,200 routes in 35 European nations.
The recent announcement does not imply that a deal has been finalized. Apollo has been given till 17:00 on August 7 to submit a formal bid for EasyJet or walk away. Castlelake’s deadline for making a definitive offer is August 3.
Apollo’s approach came after Castlelake made a series of offers for EasyJet, which were initially rejected by the airline after it accused the US corporation of attempting to buy it “cheaply.” However, on Sunday, EasyJet announced that it had struck an agreement in principle with Castlelake, a US investment group, on a potential acquisition offer worth roughly £5.2 billion. One important regulatory impediment to any EasyJet merger is that European Union regulations require the carrier to be majority-controlled by EU residents.
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