EasyJet Agrees to $7.65 Billion Apollo Buyout, Rejects Castlelake Offer

British low-cost airline EasyJet has agreed in principle to a takeover bid from American investment firm Apollo Global valued at 5.7 billion pounds ($7.65 billion). This announcement came on Friday, following EasyJet's earlier agreement with another U.S. investment company, Castlelake, for a 5 billion pound offer. Reuters reported that Apollo's bid of 7.15 pounds per share is 3.6% higher than Castlelake's offer, potentially triggering a bidding contest for the London-listed airline.

EasyJet's board stated it does not intend to recommend Castlelake's offer of 6.90 pounds per share, which both parties had agreed upon earlier in the week. This was an improvement over Castlelake's previous 6.50 pounds per share bid, which EasyJet rejected ten days ago, claiming it undervalued the company. EasyJet and Apollo jointly said the new offer is superior for shareholders as it offers a higher valuation than Castlelake's latest proposal.