Apollo Global Management aims to privatize EasyJet in a deal valued around $7.7 billion, paying £7.15 per share (about 54% above the Feb 27 close). Castlelake withdrew its bid, reducing competing offers and paving the way for Apollo to close by the end of Q1 next year. For EJTTF holders, near-term upside centers on the cash offer, with potential delisting risk after completion.
London's FTSE 100 rose modestly as Vodafone and easyJet led gains, signaling appetite for deal-driven uplift. Middle East tensions capped upside, implying EJTTF could see limited near-term volatility unless travel demand accelerates. The move underscores travel exposure as a key near-term driver for EJTTF performance.
EasyJet agrees in principle to a higher £5.7 billion takeover bid from Apollo, after Castlelake withdrew its offer, signaling a bidding war. The development implies a premium for EJTTF shareholders and could push the stock higher in the near term, but closing depends on financing and regulatory approvals. Clarity on the timeline is likely within weeks to months depending on due diligence and antitrust reviews.
Castlelake has escalated its bid for EasyJet, offering up to 625p per share and valuing the deal at £4.74 billion. EasyJet rejected the approach as opportunistic and the bidder is taking the offer directly to shareholders, with investors pressing for roughly £600 million more. The outcome hinges on strategic acceptance and potential counteroffers.
EasyJet publicly stated it has not received a takeover approach from Castlelake, despite reports of potential interest. The clarification sparked a near-term stock rally, with shares hitting a three-month high as investors price in the possibility of a strategic bidder. The situation remains a rumor-driven event with no concrete timelines or terms disclosed.
easyJet's pre-tax profit surged 34% to £610 million. Record summer and holiday business boosted profits. Shares increased by 2% following the earnings report. Flight add-ons contributed significantly to the earnings rise. Revenue slightly missed expectations, indicating potential caution.