easyJet Apollo jumped 14% on Friday morning after Apollo put forward a possible £5.7bn all-cash bid and the board said it was minded to recommend it. That puts the airline’s shareholders, including Stelios Haji-Ioannou and his family, in the middle of a bid fight that could leave them invested under new ownership rather than forced out when easyJet delists.
The proposed price is £7.15 a share, and Apollo said current shareholders could remain invested in the company after completion. For anyone holding the stock, the difference from Castlelake’s £6.90 proposal is not just the headline value: it changes the mix of cash now and exposure later.
£7.15 a share from Apollo
£5.7bn is the value Apollo attached to easyJet on Friday, with the offer described as all cash. The airline’s board said in its statement that it had carefully considered the proposal with financial advisers and concluded that it would be minded to recommend it to shareholders.
£855m is the amount Stelios Haji-Ioannou would be in line to receive if Apollo succeeds and he chooses to sell his stake. He owns more than 15% of easyJet with his family, and his position gives this deal a very direct shareholder impact.
Castlelake’s £6.90 proposal
£5.5bn was the value of the earlier Castlelake proposal, which easyJet’s board had already agreed in principle to accept earlier this week. By Friday, the board said it was no longer minded to recommend that bid, after Apollo’s higher offer arrived and the bidding war shifted the terms for holders.
14% was the rise in easyJet shares on Friday morning as the market moved to reflect the new bid price. That jump signalled that traders were pricing in a better outcome than Castlelake’s £6.90 a share, not a settled end point.
EU rules and 7 August
EU rules still require European airlines to be majority owned by investors within the region, even after Brexit, and Apollo said it would take all necessary steps to meet those conditions. Apollo also said it was not looking to break up easyJet and would back its current strategy and management.
7 August is the deadline Apollo faces to make a firm offer, and the board’s switch means the remaining issue is whether the ownership structure can be made to fit the rule without slowing the deal. If Apollo clears that hurdle, easyJet shareholders face a clean cash exit or the chance to stay invested under the new owner.
