Easyjet agrees in principle to £5.7bn takeover bid by US private equity firm

No-frills airline EasyJet has announced it has agreed in principle to a £5.7 billion takeover proposal from U.S. private equity firm Apollo Management. This latest offer trumps a previous bid from another U.S. investment firm, Castlelake, which EasyJet had also provisionally accepted over the weekend.

The Luton-based carrier stated that shareholders would receive £7.15 per share under the Apollo proposal, which it considers a "superior outcome" compared to Castlelake's offer of £6.90 per share. Consequently, EasyJet's board is "no longer minded" to accept Castlelake's offer.

However, the agreement in principle does not confirm a finalized deal. Apollo Management has been given a deadline of August 7 to either submit a firm bid or withdraw its offer. Castlelake's deadline to make a firm offer is August 3. A significant regulatory hurdle for any takeover of EasyJet involves European Union regulations, which mandate that the carrier must be majority-owned by EU citizens. Castlelake had proposed a partnership with two EU nationals to ensure majority control of the airline.

“

a superior outcome