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EasyJet accepts £5.7 billion takeover offer from US firm Apollo
Budget airline EasyJet has accepted a takeover bid from US investor Apollo after a competitor withdrew.
EasyJet has accepted a takeover offer worth £5.7 billion from the US firm Apollo Global Management. This decision was announced on Thursday after rival bidder Castlelake abandoned its acquisition plans.
Approval of this offer marks a crucial step for EasyJet, as the company has faced financial challenges in the past, particularly due to the impact of the COVID-19 pandemic on the aviation industry.
Apollo Global Management, a private equity investor, is expanding its portfolio in the low-cost airline sector with this purchase. The acquisition may be viewed as a strategic response to the current market for undervalued airlines.
Acceptance of Apollo's offer could provoke further interest from financial investors in similar companies within the aviation sector. Analysts expect that other airlines deemed undervalued may attract the attention of investors.