**Sir Stelios Retains Significant Stake Amid £5.7bn EasyJet Takeover by Apollo**
EasyJet's founder, Sir Stelios Haji-ioannou, and his family will continue to hold a substantial share in the airline following a proposed £5.7 billion takeover by the US investment firm Apollo Global Management. This takeover marks the conclusion of a competitive bidding process for one of Europe's largest low-cost airlines.
On Thursday, EasyJet confirmed that its board had accepted Apollo's all-cash offer, which values the airline at approximately $7.7 billion. The decision came shortly after rival investment group Castlelake announced it would not enhance its bid of just over £5 billion, thereby clearing the path for Apollo’s higher proposal. Both investment firms were given a deadline until Friday to submit revised offers under British takeover regulations.
In a statement, Castlelake expressed that after careful consideration, it would not be making an improved offer for EasyJet. This decision allowed Apollo's bid to proceed without further competition. EasyJet had previously indicated that Apollo's initial proposal was more favorable for shareholders compared to Castlelake’s offer.
It is important to note that the takeover will not result in Apollo acquiring full ownership of EasyJet. British and EU aviation regulations mandate that airlines must remain majority-owned and effectively controlled by qualifying UK or European nationals. Consequently, the acquisition will involve a structure that enables EasyJet to comply with these regulations after it is delisted from the London Stock Exchange.
Sir Stelios welcomed Apollo's involvement, confirming that his family intends to retain shares in the privately held airline post-takeover. He expressed optimism regarding Apollo's strategic intentions for EasyJet, which he believes will foster new growth opportunities for the company. "I welcome Apollo’s strategic intentions for EasyJet, which aim to create new growth prospects for the company," he stated.
The founder emphasized that Apollo's decision to invest represents a vote of confidence not only in EasyJet but also in the broader business model associated with the easy brand. "The fact that Apollo, one of the world’s most powerful and experienced institutional investors, has decided to support and invest in the development of EasyJet, the leading member of the easy family of brands, is a strong confirmation of the value of the easy brand and the dynamics of the easyGroup Ltd business model," he noted.
Sir Stelios also clarified that the takeover would not diminish his family's role in the airline. "My family and I intend to maintain our position as significant long-term shareholders in EasyJet, supporting the next chapter of the company’s journey," he affirmed.
Apollo Global Management, which manages assets exceeding $1 trillion, brings significant experience in the aviation sector. The firm has previously invested in companies such as Aeromexico, Sun Country Airlines, and Atlas Air, and has provided financing for major airlines like Air France-KLM and Virgin Atlantic.
For Sir Stelios, this agreement represents a significant milestone in a business journey that began in 1994 when he founded EasyJet at the age of 27. The airline was listed on the London Stock Exchange in 2000, enabling it to raise capital for expansion. Since then, EasyJet's fleet has expanded from 19 aircraft to approximately 356.
Despite the airline's public listing, Sir Stelios retained ownership of the EasyJet brand through his private company, easyGroup Ltd. This arrangement allows EasyJet to license the name from easyGroup, ensuring a continued commercial relationship beyond his shareholding. "Owning the easy family of brands has created a steady stream of income for me over the last 26 years, which I can now use to fund the charitable work of the Stelios Haji-ioannou Charitable Foundation," he concluded.
As EasyJet prepares for this new chapter under Apollo's stewardship, the airline's future remains closely tied to the vision of its founder, who has played a pivotal role in shaping its identity and success in the competitive low-cost airline market.