Implications: easyJet Agrees to Apollo‘s $5.8BB Bid (4.3X FY26 EBITDAR)

Research evidence excerpt

Implications: easyJet Agrees to Apollo‘s $5.8BB Bid (4.3X FY26 EBITDAR)

heir equity into a vehicle w/ voting rights. Apollo intends to fund Seat 40% 76.1% 72.1% 69.8% 69.4% 69.1%

US 20%

the cash purchase with equity and debt and has until August 7 to finalize their offer. Apollo's offer 0%

Ending 2024 2025 2026 2027 2028

Seatsfollows Castlelake's takeover interest announced in late May and 5 resulting offers, that increased

from £5.60 to £6.90, with easyJet's board shifting support away from Castlelake's latest offer. .Source: Cirium®, CompanyEconomy Premiumdata, JefferiesFirst/Businessestimates

Value of Fleet Essentially In Line with Offer - Fleet of 356 Aircraft w/ £5.0BB In Total Owned

Assets. easyJet operates a fleet of 356 Airbus aircraft consisting of 180 A320s, 97 A320neos and

79 A319s w/ an avg fleet age of ~11yrs supporting >1.2K routes across 165 airports to Domestic,

City & Beach destinations. easyJet plans to retire its entire A319 fleet by FY29 incl 3 retirements in

FY26, 19 in FY27, and 35 in FY28. easyJet has a firm orderbook of 287 Airbus aircraft (125 A320s

and 162 A321s) due by FY34 + 100 purchase rights w/ 90 planned deliveries through FY28 incl

17 in FY26, 30 in FY27, and 43 in FY28 for total fleet growth of +5%, from 370 in FY26 to 389 in

FY28. easyJet owns 58% of its current fleet w/ £5.0BB (~$6.7BB) book value of total owned assets

expected to grow to >£7.5BB (>$10BB) by FY28.

Planned Capacity Growth of +5% Over MT Primarily Driven by Upguaging. easyJet is targeting

disciplined capacity growth up to +5% over the MT, with FY26 seat capacity growth +3% to

~107MM and ASKs +6% y-o-y. Growth is primarily driven by upguaging (+4pt/+5pt in FY27/FY28),

on accelerated retirement of the A319 fleet, w/ mgmt expecting £250MM ($336MM) in annual cost