Apollo trumps Castlelake with $7.65 billion easyJet bid
EasyJet Agrees to Apollo Global's Superior Takeover Offer
Takeover Details and Bidding War
July 10 (Reuters) - EasyJet has agreed in principle to a £5.7 billion ($7.65 billion) takeover approach from Apollo Global, the British budget airline said on Friday, ditching a lower bid from rival suitor Castlelake.
Comparison of Apollo and Castlelake Bids
Apollo's proposal of about £7.15 per easyJet share is about 3.6% higher than Castlelake's latest bid and could mark the start of a takeover battle for the London-listed carrier.
Board Recommendation and Shareholder Value
The easyJet board said it was no longer minded to recommend Castlelake's proposal of £6.90 per share, which the two sides had agreed in principle only days earlier.
"The proposed cash offer delivers a superior outcome for easyJet shareholders by providing a higher cash value than Castlelake's latest proposal," easyJet and Apollo said in a joint statement.
Next Steps and Strategic Implications
Deadlines for Firm Offers
Apollo must announce a firm offer for easyJet by August 7 or walk away. Castlelake has until August 3.
Apollo's Strategic Vision
"Apollo believes in easyJet’s existing strategy of evolving and strengthening the low-cost carrier model," Apollo said.
Additional Information
Exchange Rate Reference
($1 = £0.7447)
Reporting Credits
(Reporting by Yamini Kalia and Yadarisa Shabong in BengaluruEditing by Rashmi Aich, Subhranshu Sahu and David Goodman)
