Apollo Global Management has emerged as the frontrunner in the battle for easyJet after agreeing key financial terms for a £5.7 billion takeover proposal, prompting the airline’s board to abandon support for a lower rival bid from Castlelake.

The new offer  is £7.15 per share, significantly higher than Castlelake’s £6.90 offer. It includes  an 81% premium to pre-offer share price, meaning Apollo is offering shareholders 81% more than easyJet’s share price before takeover speculation began. This is 22% above the highest share price seen in the previous four years. As an example, If an investor owned 1,000 easyJet shares, before the bid, those shares were worth about £3,940.
Under Apollo’s offer, they would receive £7,150.

ANALYSIS: The easyJet takeover bid

Although an offer has been made, it is not binding and due diligence remains outstanding. Regulatory approvals are required and Apollo has until 7 August 2026 to make a firm offer or walk away.

easyJet also states that Apollo believes in the airline’s existing strategy of evolving and strengthening the low-cost carrier model, most notably through up-gauging the fleet by rolling out the larger A321XLRs, as well as enhancing the ancillary and loyalty offering, and scaling Holidays into a structurally differentiated earnings stream.

Apollo further believes that easyJet management’s operational and commercial ambitions can be substantially accelerated via the access to incremental capital and longer-term business and strategic planning that a private company setting affords.

Apollo is also proposing a “stub equity” alternative that would allow eligible shareholders to roll over their existing holdings into the investment vehicle through which Apollo would own easyJet, enabling them to participate in the airline’s future growth.

Under the Takeover Code, Apollo has until 7 August 2026 to either announce a firm intention to make an offer for easyJet or confirm that it does not intend to proceed. Until then, easyJet has advised shareholders to take no action.