Low-cost airline easyJet is edging closer to a takeover after Apollo Global Management submitted a higher \u00a35.7 billion (\u20ac6.6 billion) bid, prompting the airline\u2019s board to withdraw its support for a rival offer from Castlelake.<\/strong><\/p>\n The British airline announced on Friday that it had agreed in principle to Apollo\u2019s all-cash proposal of \u00a37.15 per share<\/strong>, describing it as a \u201csuperior outcome\u201d<\/strong> for shareholders compared with Castlelake\u2019s \u00a36.90 per share<\/strong> bid, which had only been recommended days earlier.<\/p>\n Following the announcement, easyJet shares surged around 15%<\/strong>, reaching their highest level since early 2022, although they remained below Apollo\u2019s offer price.<\/p>\n The latest bid represents an 81% premium<\/strong> to easyJet\u2019s closing share price on 28 May, before takeover speculation emerged. The airline\u2019s valuation had been significantly weakened after soaring fuel costs and geopolitical tensions, particularly the conflict between the United States and Iran, weighed heavily on the aviation sector.<\/p>\n easyJet reported a \u00a3377 million (\u20ac442 million) loss after tax<\/strong> for the six months ending 31 March, a deterioration of 27%<\/strong> compared with the same period last year. Despite the loss, revenue increased 12% to \u00a33.95 billion (\u20ac4.6 billion)<\/strong>.<\/p>\n The airline has also warned that higher fuel prices and uncertainty in consumer demand are expected to continue affecting performance during the second half of the financial year. Chief Executive Kenton Jarvis<\/strong> said the company remains well positioned to navigate the difficult trading environment.<\/p>\n The wider aviation industry is facing similar pressures, with the International Air Transport Association recently forecasting that global airline profits could fall by around half this year.<\/p>\n Despite Apollo\u2019s higher offer, completing the takeover will not be straightforward.<\/p>\n Under European Union regulations, airlines operating within the bloc must remain majority-owned and effectively controlled by EU nationals<\/strong>. Any successful bidder will therefore need to demonstrate compliance with these ownership rules before regulatory approval can be granted.<\/p>\n Castlelake attempted to address this issue by partnering with Irish aviation executives Peter Bellew<\/strong> and Mark Breen<\/strong>, who would have held a controlling stake through an EU-based company.<\/p>\n Apollo has said it will take \u201call necessary steps\u201d<\/strong> to secure approval, including meeting requirements under the EU\u2019s Foreign Subsidies Regulation.<\/p>\n Apollo has also committed to retaining the easyJet<\/strong> brand by extending its licensing agreement with easyGroup<\/strong>, the company owned by airline founder Sir Stelios Haji-Ioannou<\/strong>. Sir Stelios and his family own approximately 15%<\/strong> of easyJet and receive royalties from the airline\u2019s continued use of the brand.<\/p>\n The pledge could prove significant in securing support from one of the airline\u2019s largest shareholders.<\/p>\n Neither proposal is currently binding. Under UK takeover rules, Castlelake must decide by 3 August<\/strong> whether to make a formal offer, while Apollo has until 7 August<\/strong> to submit a firm bid.<\/p>\n If the takeover proceeds, easyJet would be delisted from the London Stock Exchange, marking another major British company acquired by overseas investors.<\/p>\n You could add this paragraph towards the end of the article:<\/p>\n The takeover battle is also significant for the Greek and Cypriot community, as easyJet was founded in 1995 by British-Greek Cypriot entrepreneur Sir Stelios Haji-Ioannou.<\/p>\n The Haji-Ioannou family remains the airline\u2019s largest shareholder, holding just over 15%<\/strong> of the company. If Apollo\u2019s \u00a35.7 billion takeover is completed, the family\u2019s stake would be worth an estimated \u00a3850 million<\/strong>, while Apollo has pledged to retain the easyJet brand through its existing licensing agreement with easyGroup, ensuring the airline\u2019s iconic name continues under any new ownership.<\/p>\n<\/blockquote>\nChallenging financial outlook<\/h3>\n
EU ownership rules remain the biggest hurdle<\/h3>\n
Stelios\u2019 brand protected<\/h3>\n
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