Easy Jets Off To Apollo

Apollo's latest mission isn't headed for the Moon, but it could still deliver a landmark landing. The private equity giant has tabled a £5.7 billion all-cash offer for easyJet, trumping rival bidder Castlelake's £5.5 billion proposal with a bid of 715p per share and prompting the airline's board to switch its support. Apollo has pledged to back easyJet's existing management team, continue its fleet modernization program, expand the fast-growing Holidays business and preserve founder Sir Stelios Haji-Ioannou's brand licensing arrangement, while also giving existing shareholders the option to retain an equity stake. The deal still faces regulatory hurdles and Apollo has until early August to make a firm offer. It is the latest example of PE groups swooping in to take FTSE-listed companies private. EasyJet said the offer “delivers a superior outcome” for shareholders, who will be able to roll over their existing stock holdings into the new holding company managed by Apollo. If Apollo does complete the mission, it will have proved that the shortest route to orbit sometimes starts on an airport runway!