EasyJet Board Backs £5.7 Billion Takeover Offer From Apollo

1-Minute Brief

EasyJet's acceptance of Apollo's higher bid signals intensifying competition among private equity firms for UK-listed companies.

Key Facts

• EasyJet received a £5.7 billion all-cash takeover offer from US private equity firm Apollo, valuing shares at 715 pence.
• The Apollo bid surpasses a previous offer from rival private equity firm Castlelake.
• EasyJet's board stated it is 'minded to recommend' Apollo's offer to shareholders.
• EasyJet had earlier accepted a rival bid from Castlelake earlier in the week, according to The Guardian.
• EasyJet shares rose by 13% following the announcement of the Apollo bid.

What Happened

EasyJet's board indicated support for a £5.7 billion takeover offer from Apollo, which exceeds a previous proposal from Castlelake. The board is prepared to recommend the Apollo bid to shareholders.

Why It Matters

The bidding war for EasyJet highlights increased private equity interest in UK companies and may lead to further consolidation in the airline sector. The outcome could impact EasyJet's future operations and its presence on the London Stock Exchange.

What's Next

Shareholders are expected to review and vote on the Apollo offer. Further developments may include a revised bid from Castlelake or additional suitors entering the process.