Apollo tops Castlelake with $7.65 billion easyJet bid

• Apollo's bid of £7.15 per share values easyJet at £5.7 billion ($7.65 billion), outbidding rival Castlelake's previous offer
• EasyJet had previously agreed in principle to Castlelake's sweetened offer of £6.90 per share on Sunday, just days before Apollo's higher bid
• The proposed all-cash offer is expected to deliver a 'superior outcome' for easyJet shareholders according to company statements

Summary: Apollo Tops Castlelake with $7.65 Billion EasyJet Bid

British budget airline easyJet has agreed in principle to a £5.7 billion ($7.65 billion) takeover offer from Apollo Global Management, valuing shares at £7.15 each. The deal represents a superior offer compared to a previous bid from rival investment firm Castlelake.

Key Transaction Details:

• Offer Value: £5.7 billion ($7.65 billion) all-cash proposal
• Price per Share: £7.15
• Acquirer: Apollo Global Management (APO.N)
• Target: easyJet, British low-cost carrier
• Exchange Rate: $1 = 0.7447 pounds

Transaction Timeline:

Apollo's bid follows after easyJet had previously accepted a sweetened offer from Castlelake on Sunday at £6.90 per share, indicating Apollo raised its bid to outmaneuver the competing investment firm.

Market Implications:

The agreement in principle suggests easyJet's board views Apollo's offer as delivering a "superior outcome" for shareholders. This bidding war between Apollo and Castlelake demonstrates strong investor appetite for European low-cost carriers, potentially signaling confidence in the post-pandemic aviation recovery and consolidation opportunities in the budget airline sector.

The transaction represents a significant development in the aviation industry, with one of Europe's prominent budget carriers potentially moving into private equity ownership. The deal remains subject to finalization and regulatory approvals.

Sector Impact:

This potential acquisition could trigger further M&A activity among European budget airlines as private equity firms seek opportunities in the recovering travel sector.