EasyJet's board has given conditional approval to a £5.7 billion all-cash takeover proposal from Apollo Management, signalling it will no longer recommend a competing offer from Castlelake.
Apollo is offering £7.15 per share, surpassing Castlelake's £6.90 per share. The U.S. private equity firm has until 17:00 on 7 August to submit a formal bid or walk away. Apollo has indicated it supports EasyJet's existing strategy and does not intend to break up the airline.
Any deal must navigate European Union regulations requiring airlines to be majority-owned by EU citizens, a structural hurdle for foreign buyers. Castlelake's earlier proposal had valued the carrier at approximately £5.5 billion.