Apollo makes a US$7.7 billion takeover offer, easy Jet shares soar 13%
Private equity giants Apollo and Castlelake both submitted acquisition plans, and a battle for acquisition of low-cost airline EasyJet broke out. EasyJet shares soared sharply after the European market opened and are currently up 14%. The global aviation industry continues to be under pressure, and the conflict between the United States and Iran has led to tight supply of aviation kerosene. An easyJet Airbus A320 passenger plane at Malpensa Airport in Milan, Italy on October 3, 2018 EasyJet, a low-cost airline, announced on Friday that it was evaluating a takeover bid for Apollo Global Management, which has a total management value of US$7.7 billion. The company has become involved in a tug-of-war for acquisitions by private equity institutions. Stimulated by this news, EasyJet's share price surged sharply. Under the all-cash acquisition plan, easyJet shareholders will receive 7.15 pounds (equivalent to $9.61) per share, valuing the company as a whole at 5.7 billion pounds, or approximately $7.66 billion. In addition to the cash consideration, Apollo also provides shareholders with Retained Equity Alternatives : Shareholders can choose to transfer their EasyJet shares to Apollo Fund’s investment entity holding the airline to continue to hold shares. Shareholders who choose this option can retain their voting rights, and relevant details are still subject to further negotiation. The London-listed stock has gained 15.2% this year. EasyJet's shares rose sharply on Monday after the news broke that it had agreed in principle to a $7.3 billion acquisition by private equity firm Castlelake. But the company said on Friday that its board was reassessing its previous position. EasyJet issued an announcement regarding Apollo's takeover offer, saying: "Compared with Castlelake's latest plan, this cash takeover offer can bring higher cash returns and better income to easyJet shareholders. The board of directors also believes that this plan combines valuation advantages, strategic fit and long-term operation guarantee, which is extremely attractive." The company made it clear: "As a result, the easyJet board is no longer inclined to recommend an acquisition of Castlelake." Castlelake's previous cash offer was $6.90 per share, and the agency needs to issue a formal acquisition offer before August 3, otherwise it will withdraw from the acquisition. Apollo's offer represents a premium of about 22% to the stock's closing price on Thursday; Compared with the closing price of £3.94 on the last trading day before Castlelake's takeover offer window opened (May 28), Apollo's offer represents a premium of up to 81%. The global aviation industry is currently in a difficult situation, and the conflict between the United States and Iran continues to squeeze the supply of aviation kerosene. The International Air Transport Association warned last month that soaring fuel costs will cut global airline profits by half this year. In the first half of 2026, easyJet's losses widened further, with a pre-tax loss of 552 million pounds, compared with a loss of 394 million pounds in the same period last year. The company stated that the conflict in the Middle East continued to impact its operations in the second half of the year, and the rise in fuel costs coupled with the uncertain industry outlook dragged down the overall operating performance. Analysts at Bernstein Brokerage issued a research report on Friday morning saying that if Apollo completes the acquisition, the possibility of easyJet continuing to expand as originally planned will significantly increase. The analyst added: "However, based on the current acquisition price, if this transaction is to have investment value, the company must complete a very strong cost reconstruction and achieve a profit turning point, and the extent of improvement will be far beyond our current expectations."