easyJet has agreed to a recommended £5.7bn takeover by funds managed by Apollo, putting the UK-listed airline on course to enter private ownership after a competitive bidding process.
The offer, made through Apollo-controlled Eagle Bidco, values each easyJet share at £7.15 in cash. It represents an 81% premium to the airline’s closing share price on 28 May, the final trading day before the takeover interest became public.
Eligible shareholders will also be able to elect for unlisted rollover shares in an indirect parent company of the bidder. The alternative is capped at 49.9% of the parent’s issued ordinary share capital after completion, meaning excess elections could be scaled back and partly settled in cash.
EasyJet’s board has unanimously recommended the cash offer, concluding that it provides shareholders with certainty at a substantial premium while transferring the operational and financial risks attached to the airline’s next phase of investment.
The transaction is expected to be implemented through a court-approved scheme of arrangement and remains subject to shareholder approval, regulatory clearances, and other conditions. Completion is expected by the end of the first quarter of 2027.
The firm offer follows several months of takeover activity. Castlelake had previously reached a preliminary agreement on a £6.90-a-share proposal, but Apollo subsequently entered the process with a higher bid. Castlelake confirmed on 6 August that it would not make a final offer, removing the principal competing proposal.
EasyJet founder Sir Stelios Haji-Ioannou and members of his family, who together control approximately 15.3% of the airline, have given irrevocable undertakings to support the transaction. They intend to elect for the rollover-share alternative for most of their holdings, retaining exposure to the business after it leaves the stock market.
The agreed acquisition advances the process reported by Business Quarter earlier this week, when Apollo and Castlelake were still operating under aligned Takeover Panel deadlines.
Private ownership would give Apollo greater freedom to make long-term investment decisions away from the quarterly reporting expectations attached to a public listing. It would also place the risks associated with aircraft investment, fuel-price volatility, airport capacity, labour costs, and geopolitical disruption within a private capital structure.
Airlines remain highly capital-intensive despite the recovery in passenger demand after the pandemic. Operators must commit to aircraft orders years in advance, maintain substantial liquidity, and manage exposure to fuel, currencies, operational disruption, and regulation across multiple jurisdictions.
Low-cost carriers have faced a more uneven environment during 2026. Demand has remained resilient across many European markets, but higher energy costs and disruption linked to international conflict have increased uncertainty around fuel expenditure, routes, and schedules.
Those conditions increase the value of predictable access to capital, particularly for airlines seeking to renew fleets, expand airport positions, and improve operating efficiency. Private ownership can provide greater flexibility, although it may also involve higher leverage and less public disclosure.
The transaction will add to concern about the declining number of major companies listed in London. Private equity and overseas buyers have continued to target UK-listed groups whose valuations appear low relative to their assets, international competitors, or longer-term cash-generating potential.
For easyJet shareholders, the offer provides a defined exit price after a volatile period. The rollover option allows eligible investors to retain an interest in future gains under Apollo’s ownership, but those shares will be unlisted, less liquid, and subject to a different governance structure.
The acquisition also transfers control of an important part of Europe’s aviation infrastructure. EasyJet serves major airports across the UK and continental Europe, holds valuable take-off and landing slots, and operates a fleet requiring sustained investment and maintenance.
Apollo will now need to secure the required shareholder votes and complete the regulatory process. Until the scheme becomes effective, easyJet remains publicly traded and continues to operate under its existing board and management.
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