EasyJet's shares experienced a notable increase after the announcement of Apollo Global Management's takeover bid, which values the airline at approximately £5.7 billion ($7.66 billion). The bid includes a cash offer of £7.15 ($9.61) per share, representing a 22% premium over EasyJet's closing price prior to the announcement.
Additionally, Apollo has proposed a Stub Equity Alternative, allowing shareholders to maintain their voting rights by rolling their existing shares into the investment vehicle. This comes on the heels of another bid from Castlelake, which offered $6.90 per share, indicating a competitive bidding environment for EasyJet.
The airline has faced significant challenges recently, including a widening pre-tax loss of £552 million in the first half of 2026, attributed to rising fuel costs and the impact of geopolitical tensions. The aviation sector is under pressure, with the International Air Transport Association predicting a halving of global airline profitability due to soaring fuel expenses.
The outcome of these bids could significantly influence EasyJet's strategic direction and financial recovery in a turbulent market