US private equity firm Apollo Global Management has joined the bidding war for British low-cost airline easyJet, according to sources familiar with the matter. The move pits Apollo against other potential acquirers, including rival private equity groups and possibly strategic buyers, as easyJet's board evaluates offers.
Apollo's offer details
Apollo has submitted a preliminary proposal valuing easyJet at around £4.5 billion, including debt, the sources said. The offer represents a premium of about 30% to easyJet's closing share price before news of the bid emerged. EasyJet's shares surged 18% on Thursday following reports of the bidding war.
Competing bids and strategic rationale
Other suitors are believed to include private equity firm TPG and a consortium led by Indigo Partners, the US investment firm with stakes in several budget airlines. EasyJet's attractive route network, strong brand, and recovery in post-pandemic travel demand have made it a prime target. The airline has also been cutting costs and improving profitability, making it more appealing to buyers.
Regulatory and shareholder considerations
Any deal would face regulatory scrutiny, particularly on competition grounds, given easyJet's presence at major airports. Shareholders, including founder Sir Stelios Haji-Ioannou, who holds about 15% of shares, will be key to the outcome. Sir Stelios has previously opposed takeovers, but a high enough premium could sway him.
Market reaction and next steps
Analysts expect a formal bidding process to begin soon, with a deadline for binding offers. easyJet's board has appointed financial advisers to review proposals. The outcome could reshape the European aviation landscape, as consolidation in the sector accelerates.
