EasyJet stock rises as airline weighs $7.7 billion Apollo takeover bid
EasyJet shares rose significantly after the airline received a $7.7 billion takeover bid from Apollo Global Management. The board is currently reconsidering a previous agreement with Castlelake in favor of this higher-value offer.
Why it matters
This bidding war highlights the ongoing consolidation and private equity interest in the European aviation sector.
EasyJet stock soared Friday after the budget carrier said it is considering a $7.7 billion takeover bid from Apollo Global Management , putting the airline at the center of a private equity bidding war.
Under the terms of the cash offer, easyJet shareholders would be entitled to £7.15 ($9.61) per share of the company, valuing the firm at £5.7 billion, around $7.66 billion.
As an alternative to the cash payment, Apollo would also offer shareholders a Stub Equity Alternative – the option to "roll their existing shareholding in easyJet into the vehicle through which the Apollo Funds would hold their investment in easyJet."
The terms of that alternative, which would see shareholders maintain their voting rights, is still subject to further discussion.
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