Why easyJet Prefers Apollo Over Castlelake

easyJet is showing a clear preference for the latest bid from Apollo Global Management over that of rival Castlelake in a latest offering disclosed on July 10. And that’s not just for financial reasons. Apollo intends to keep the easyJet brand intact, which indicates that the airline will continue as a going concern. In contrast, Castlelake seems more interested in acquiring the airline’s existing and future fleet and assets and split up the company.

easyJet disclosed the Apollo

bid early on Friday. The US investor is offering 750 pence per share, which values the airline at £5.7 billion. This is up 84 percent on easyJet’s share price of 394 pence on May 28. In its fifth offering on July 4, Castlelake upped its offer to 690 pence, which valued easyJet at £5.5 billion. The Board will no longer recommend Castlelake’s offer to its shareholders, a U-turn from earlier this week.

Reading the easyJet regulatory announcement, a different and more positive tone is evident. Except for the fifth offer from Castlelake, all its attempts were regarded as a hostile bid and, as such, declined. The agreement with Apollo Management X is met differently.