In a joint announcement, easyJet and Apollo announced that the American company and the airline company “reached an agreement on the terms and conditions of a recommended cash acquisition”.

The offer has the backing of easyJet founder Stelios Haji-Ioannou, who said he was “pleased with Apollo’s strategic intentions” for the business he founded in 1994.

The founder of the British airline, Stelios Haji-Ioannou has also mentioned that he was “pleased with Apollo’s strategic intentions”, for a business that was founded in 1994. The founder added, saying that “the fact that Apollo, as one of the most well-resourced and experienced institutional investors in the world, has decided to back and grow easyJet, the leading member of the Easy family of brands, is testament to the strength of the easy brand and the business model of Easygroup.”

Castlelake withdrawal

Castlelake has also mentioned that although it was “very appreciative of the constructive engagement with the easyJet board and management team”, it was not possible to make a proper bid for acquiring easyJet.

Castlelake, based in Minneapolis, in the USA, made various unsolicited offers for easyJet between May and July, which were refused by the airline’s board, even after having a preliminary offer of £5.5bn approved.

However, Castlelake’s bid was surpassed by Apollo’s proposal of £5.7bn. Therefore, easyJet withdrew its support for Castlelake’s suggestion, turning to Apollo’s bid, which would be more lucrative.

This way, Apollo’s offer represents 81% of easyJet’s closing price before either interested company shared a proposal.