easyJet (AO) | Hold | easyJet receives takeover offer from Apollo, ditches Castlelake offer

Research evidence excerpt

easyJet (AO) | Hold | easyJet receives takeover offer from Apollo, ditches Castlelake offer

News comment

Release date: 10 July 2026

Marc Zeck, CFA

Equity Research Analyst

+ 49 69 7569 6323

mzeck@keplercheuvreux.com

HoldeasyJet

United Kingdom | Airlines & airports MCap: GBP4.4bn

Target Price: 400p Bloomberg: EZJ LN Reuters: EZJ.L

Current Price: 588.20p Free float 83%

Up/downside: -32.0% Avg. daily volume (GBPm) 4,321.2

YTD abs performance 15.2% Market data: 09 July 2026

52-week high/low (GBP) 610.00/339.70

easyJet receives takeover offer from Apollo, ditches Castlelake offer

Key points:

Apollo offers to buy easyJet for GBP7.15 per share, valuing the airline at about GBP5.7bn. As an alternative for an all cash offer,

Apollo suggests a stub equity alternative that would allow investors to roll their current investment into a newly created vehicle

through which Apollo would hold its investment in easyJet. EasyJet's Board of Directors recommends shareholders to accept

Apollo's offer should the company decide to submit a firm offer by 7 August. The Board does not recommend the Castlelake offer

anymore.

It is not yet know which structure Apollo will choose to satisfy EU and UK airline ownership regulation. As an US investor, Apollo

cannot own a majority in the UK and EU airline operations of easyJet. While it is possible that Castlelake will raise its offer for

easyJet, Castlelake's setup, that includes bidding for easyJet with the help of two former EU airline executives to satisfy EU/UK

ownership regulations, might limit Castlelake's offer potential as the two former airline executives may have less funds available

than institutional investors.

With Castlelake, speculation was rife what the company would do to easyJet as a break up of easyJet was a feasible option.