EasyJet: accepts Apollo Management’s offer of £7.15

EasyJet’s board rejects Castlelake’s proposal

(Il Sole 24 Ore Radiocor) - The British low-cost airline EasyJet has announced that its board of directors has approved in principle the terms of a potential takeover bid submitted on 8 July by the private equity fund Apollo Management, which values the company at around 5.7 billion pounds. Under the terms of the agreement, EasyJet shareholders would be entitled to receive £7.15 per share.

Apollo proposes to offer eligible EasyJet shareholders the opportunity to transfer their existing shareholdings into the vehicle through which the Apollo funds will hold their investment in the airline. The offer is expected to be fully financed through a combination of equity and credit facilities. The equity financing will come from Apollo Funds. Barclays has sent a letter to Apollo stating that it is very confident of securing the necessary debt financing for the offer, EasyJet said. EasyJet stated that its board of directors “has concluded that the financial terms of the proposed cash offer are such that it can be recommended to EasyJet shareholders” should Apollo submit a definitive offer by 7 August.

The offer provides “a better outcome for easyJet shareholders, delivering a higher cash value” than Castlelake’s latest proposal of £6.90 per share, made on 4 July, the airline added. EasyJet also stated that its board of directors no longer intends to recommend Castlelake’s proposal.

red-vmg