EasyJet Taken Over in £5.7bn Deal
After a competing bidder withdrew, the US company Apollo consented to purchase the basic airline EasyJet for £5.7 billion.
When US investment group Castlelake, which had made many proposals for the airline. Announced that it was quitting the bidding process, the purchase was finalized.
According to Apollo’s statement, it aims to assist the airline’s development and has no plans to remove jobs over the first 12 months following the purchase. Customers may anticipate almost the same quality of service.
Among the biggest airlines in Europe is EasyJet.
It operates 1,200 routes across 35 European nations and employs over 19,000 workers.
“My family and I intend to remain invested as long-term major shareholders of EasyJet for the next chapter in the company’s journey,” he said.
There has been doubt around EasyJet’s future ownership since it was disclosed in late May that Castlelake was putting in a bid for the airline.
Castlelake’s first attempts to buy it “on the cheap” were rebuffed by EasyJet after the airline accused the US firm of doing so.
EasyJet and Castlelake announced a deal in principle at the beginning of July.
Apollo Sees Strong Future for EasyJet
AJ Bell’s head of financial analysis, Danni Hewson, said while the offer was significantly above where the company’s shares were trading before the Iran war. The figure was “still woefully short of the company’s pre-pandemic highs.”
Apollo said it was “highly supportive” of the airline’s existing strategy, adding there was “a significant opportunity to accelerate the operational and commercial ambitions” for the EasyJet Group.
“EasyJet is a leader in European aviation, having built a differentiated market position through its compelling customer proposition. Expansive network and strong brand,” said Alex van Hoek, partner and European private equity lead at Apollo.
EasyJet chief executive Kenton Jarvis said, “We welcome Apollo’s commitment to our business. Our people believe that its experience in the aviation sector makes it a strong partner for EasyJet.”
EasyJet Staff Protected After Apollo Deal
Apollo believes that this may be accomplished by giving the Haji-Ioannou family and other shareholders from the EU ownership of around half of the company.
Apollo stated that even while it does not plan to lay off any employees for at least a year following the completion of the purchase.
Some positions involved in running EasyJet’s publicly traded business may be eliminated if the sale goes through and EasyJet delists from the stock exchange to become a private company.
According to the company, there would be a “limited number of roles in specific areas.”
The possible loss of another well-known brand from London marketplaces would be viewed as a setback.
“Air travel might not be as amazing as space travel, but retail investors understand it and it can be replaced,” she stated.
