𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Budget airline easyJet is to be sold in a £5.7bn deal to a private equity firm that has promised not to cut jobs for at least a year.

Apollo outbid rival suitor Castlelake, which had walked away from a bidding war after offering £5.5bn

Before a deadline on Friday, Castlelake confirmed it did not intend to make a formal takeover offer, allowing Apollo to progress with its deal.

The US firm, which also owns Wagamama-owner The Restaurant Group, will pay shareholders 715p per share for the business.

The Iran war and closure of the Strait of Hormuz have left airlines facing higher fuel costs.

The deal, which will require approval at a shareholder vote, is expected to complete in the first quarter of next year, and easyJet is expected to delist from the stock market.

EasyJet, which was was founded by Sir Stelios Haji-Ioannou in 1995 to offer a low-cost alternative to British Airways, has since expanded to be one of the largest networks across Europe and now has more than 19,000 employees.

Sir Stelios and his family, who own around 15 per cent of the business, have given the takeover their support.

“I am pleased with Apollo’s strategic intentions for the easyJet business, which aim to create more growth,” he said.

“My family and I intend to remain invested as long-term major shareholders of easyJet for the next chapter in the company’s journey.”

Danni Hewson, AJ Bell head of financial analysis, said: “In the end it was Apollo that came up with the magic number of £7.15 per share. That’s a significant premium to where EasyJet’s shares were trading before the Iran war, but it’s a figure that’s still woefully short of the company’s pre-pandemic highs.”

Sir Stephen Hester, non-executive chairman of easyJet, said: “The easyJet board has carefully evaluated the proposal from Apollo alongside easyJet’s standalone prospects.

“While we remain confident in the strength of our business and the opportunities ahead, we believe this offer appropriately recognises the quality of the business we have built and delivers immediate, certain and attractive value for shareholders.”

Bosses at Apollo said they believe the airline is “one of the most attractive businesses” in the global aviation sector.

Alex van Hoek, partner and European private equity lead at the firm, said: “We are proud to be trusted to play a lead role supporting the easyJet Group in this next phase of its growth and furthering its important contribution to the European and UK aviation sector.”