The boards of easyJet and Apollo Management X (Apollo) have reached an agreement in principle on the financial terms of a takeover of the airline.
Under the terms of the proposed cash offer, made on July 8, easyJet shareholders will be entitled to receive £7.15 per share. That means that the proposed cash offer values the ordinary share capital of easyJet at approximately £5.7 billion.
As an alternative to receiving cash, Apollo is proposing to offer eligible easyJet shareholders the opportunity to roll their existing shareholding into the new company.
Apollo has agreed that it will take “all necessary steps” to satisfy conditions relating to the merger.
By no later than 5pm on August 7, Apollo must announce a firm intention to make an offer for easyJet in accordance of withdraw.
The proposed offer represents a higher cash value for easyJet shareholders than the proposal from Castlelake on July 4. That was for £6.90 per easyJet share.
Consequently, the easyJet Board no longer recommends Castlelake’s proposal to shareholders.
