Dan Coatsworth, head of markets at AJ Bell, said: “The takeover battle for EasyJet has entered a new phase with private equity group Apollo throwing its hat into the ring.
“Private credit group Castlelake’s 690p proposal has been trumped by Apollo’s 715p offer and EasyJet’s board has quickly switched allegiance. While there are still unknowns around meeting EU ownership requirements, Apollo says it will take all the necessary steps to get the deal over the line.
“The bidding war now comes down to price. Castlelake has already shown determination to get what it wants, hence multiple bids in quick succession. The spotlight now turns back to the original suitor to see if it will dig even deeper to beat Apollo. Shareholders will be putting their feet up and enjoying the ride.
“EasyJet founder Stelios Haji-Ioannou remains tight-lipped on the matter. At some point he’s going to have to comment on the takeover activity given his position as the airline’s largest shareholder. Apollo’s offer is much more enticing than Castlelake’s most recent proposal and more reasonable in valuation-terms based on forward earnings expectations. All along, certain shareholders have been concerned that EasyJet was being taken out on the cheap. They might now be happy with the new offer on the table.”
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