EasyJet (EZJ.L) said on 10 July 2026 that it had received a cash takeover proposal from Apollo Global Management (APO) valuing the airline at £5.7 billion, or 715 pence per share — a figure its board said it would be minded to recommend to shareholders. The approach supersedes a £6.90-per-share proposal from Castlelake LP that easyJet's board had agreed in principle only days earlier, with the airline stating it is 'no longer minded to recommend the Castlelake proposal' given Apollo's superior terms. Apollo has until 7 August 2026 under UK Takeover Code rules to announce a firm offer or walk away, while Castlelake's deadline falls on 3 August. The announcement does not constitute a firm intention to make an offer under Rule 2.7 of the UK Takeover Code, and shareholders have been advised to take no action at this stage.
EasyJet shares gained as much as 14% when the market opened on 10 July 2026. Apollo's proposed price represents an 81% premium to easyJet's closing share price of £3.94 on 28 May 2026 — the final business day before the offer period began on Castlelake's initial approach — and an 80% premium to the airline's 90-day volume-weighted average share price of £3.97. The bid also stands 22% above easyJet's highest share price in the four years prior to 28 May 2026. The proposed cash offer is expected to be financed through a combination of committed equity and debt facilities. Apollo is also proposing a Stub Equity Alternative that would allow eligible easyJet shareholders to roll their existing holdings into the investment vehicle through which Apollo Funds would own the airline.
The deal arrives against a challenging backdrop for the global aviation sector, where jet fuel supplies have been squeezed in the wake of the U.S.-Iran war. The International Air Transport Association warned last month that global airline profitability was expected to halve this year as fuel bills surge [Source: CNBC].
Castlelake first disclosed its interest in easyJet on 29 May 2026 and made escalating offers of £5.60, £6.00, £6.25 and £6.50, all of which were rejected, before easyJet granted it limited access to commercial information. A fifth proposal at £6.90 per share, submitted on 4 July, secured an agreement in principle at the weekend, sending easyJet shares up more than 10% to a 52-week high on the Monday prior to Apollo's approach. Analysts had questioned whether a Castlelake deal could clear European ownership rules, which require airlines operating in the bloc to be majority-owned and controlled by EU nationals, prompting Castlelake to structure its bid with former easyJet executive Peter Bellew and industry veteran Mark Breen. Apollo, for its part, said it supports easyJet's existing strategy, including increasing fleet capacity through larger aircraft, expanding ancillary and loyalty revenues, and growing easyJet Holidays. Apollo also intends to keep the brand licence agreement with easyGroup, the vehicle of founder Sir Stelios Haji-Ioannou, whose family remains the airline's largest shareholder with a 15.3% stake.
Sources: Bloomberg, The Guardian, Reuters, CNBC, Share Talk, Proactive Investors